Urban Outfitters Inc (URBN)

Cash ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash and cash equivalents	US$ in thousands	290,481	178,321	201,260	206,575	395,635
Short-term investments	US$ in thousands	319,949	286,744	181,378	239,420	174,695
Total current liabilities	US$ in thousands	1,075,680	994,205	890,374	981,473	906,132
Cash ratio		0.57	0.47	0.43	0.45	0.63

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($290,481K + $319,949K) ÷ $1,075,680K
= 0.57

The cash ratio of Urban Outfitters Inc has fluctuated over the years based on the provided data. As of January 31, 2021, the cash ratio was 0.63, indicating that the company had $0.63 of cash and cash equivalents for every dollar of current liabilities. This ratio decreased to 0.45 by January 31, 2022, suggesting a lower level of liquidity. Subsequently, the ratio continued to decrease to 0.43 by January 31, 2023, further indicating a potential strained liquidity position.

However, there was a slight improvement in the cash ratio to 0.47 by January 31, 2024, suggesting a better ability to cover short-term obligations with available cash. Finally, as of January 31, 2025, the cash ratio increased to 0.57, indicating an even stronger liquidity position for Urban Outfitters Inc.

Overall, the trend in the cash ratio of Urban Outfitters Inc shows variability, but the company appears to have managed its liquidity position effectively by increasing its cash reserves in recent years.