Urban Outfitters Inc (URBN)

Liquidity ratios

	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Current ratio	1.29	1.42	1.43	1.40	1.39	1.33	1.31	1.31	1.31	1.31	1.47	1.44	1.35	1.45	1.65	1.33	1.65	1.57	1.60	1.76
Quick ratio	0.54	0.51	0.58	0.52	0.51	0.37	0.36	0.39	0.52	0.51	0.76	0.69	0.73	0.75	0.94	0.80	0.82	0.62	0.68	0.94
Cash ratio	0.47	0.43	0.50	0.41	0.43	0.29	0.26	0.28	0.45	0.40	0.66	0.59	0.63	0.66	0.86	0.74	0.68	0.48	0.53	0.80

Urban Outfitters Inc's liquidity ratios have shown some fluctuation over the past few periods. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 1, indicating that the company has sufficient current assets to meet its short-term obligations. However, there has been a slight decline in the current ratio recently, from a high of 1.76 in Q4 2019 to 1.29 in Q1 2024.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Urban Outfitters Inc's quick ratio has varied, with a low of 0.36 in Q2 2022 and a high of 0.94 in Q3 2020. The recent quick ratio of 0.51 as of Q1 2024 indicates that the company may have some difficulty meeting its short-term obligations without relying on inventory.

The cash ratio, which reflects the proportion of current liabilities covered by cash and cash equivalents, has also seen fluctuations over the periods analyzed. Urban Outfitters Inc's cash ratio has ranged from a low of 0.26 in Q2 2022 to a high of 0.86 in Q3 2020. The recent cash ratio of 0.43 in Q1 2024 suggests that the company has a moderate level of readily available cash to cover its immediate liabilities.

Overall, while Urban Outfitters Inc's liquidity ratios have shown some variability, the company appears to have maintained a relatively stable liquidity position, with current assets generally exceeding current liabilities. However, the declining trend in certain ratios, such as the quick ratio, may indicate potential challenges in meeting short-term obligations without relying on inventory or other less liquid assets.

Additional liquidity measure

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cash conversion cycle	days	36.39	48.86	39.94	43.28	41.18	52.12	46.92	46.12	36.83	49.07	40.05	39.48	31.16	28.70	26.44	36.81	40.44	50.23	44.66	40.76

The cash conversion cycle for Urban Outfitters Inc has displayed some fluctuations over the past few periods. The cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales.

In the most recent period, the cash conversion cycle was 36.39 days, indicating that it takes approximately 36 days for Urban Outfitters to sell inventory, collect receivables, and pay suppliers. This suggests efficient management of working capital and liquidity.

Looking at the trend over the past several periods, the cash conversion cycle has generally been fluctuating, with some periods showing longer cycles than others. It reached a peak of 52.12 days in October 2022 and a low of 26.44 days in July 2020.

Overall, while there have been fluctuations, Urban Outfitters Inc has generally maintained a reasonable cash conversion cycle. It is essential for the company to monitor and manage this cycle effectively to ensure optimal working capital management and cash flow efficiency.