Urban Outfitters Inc (URBN)

Cash ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cash and cash equivalents	US$ in thousands	178,321	201,260	206,575	395,635	221,839
Short-term investments	US$ in thousands	286,744	181,378	239,420	174,695	211,453
Total current liabilities	US$ in thousands	994,205	890,374	981,473	906,132	638,770
Cash ratio		0.47	0.43	0.45	0.63	0.68

January 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($178,321K + $286,744K) ÷ $994,205K
= 0.47

The cash ratio of Urban Outfitters Inc has experienced a declining trend over the past five years, decreasing from 0.68 in January 2020 to 0.47 in January 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over time. A cash ratio below 1 suggests that the company may not have enough liquid assets to meet its immediate obligations. It is important for investors and stakeholders to monitor this trend closely to assess the company's liquidity position and ability to withstand financial challenges.