Urban Outfitters Inc (URBN)
Liquidity ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.39 | 1.45 | 1.46 | 1.33 | 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 | 1.77 |
| Quick ratio | 0.57 | 0.46 | 0.56 | 0.47 | 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 | 0.99 |
| Cash ratio | 0.57 | 0.46 | 0.56 | 0.47 | 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 | 0.99 |
The current ratio of Urban Outfitters Inc has fluctuated over the years but generally remained above 1, indicating the company's ability to meet its short-term obligations with its current assets. However, there was a slight decline in the ratio from January 31, 2024, to January 31, 2025, which may warrant closer monitoring to ensure continued liquidity.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, showed a decreasing trend over the period. This suggests that Urban Outfitters Inc may have had some challenges in meeting its short-term obligations without relying on inventory liquidation.
The cash ratio, which is the most conservative liquidity measure as it considers only cash and cash equivalents, followed a similar trend to the quick ratio, indicating a potential decrease in the company's ability to cover its current liabilities with its most liquid assets.
Overall, while the current ratio of Urban Outfitters Inc generally remained at acceptable levels, the downward trend in the quick and cash ratios signals a need for the company to closely manage its liquidity position to ensure it can meet its financial obligations effectively.
Additional liquidity measure
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 62.64 | 81.51 | 62.79 | 60.86 | 58.60 | 77.45 | 63.16 | 63.71 | 63.67 | 81.73 | 78.50 | 72.84 | 68.07 | 79.22 | 63.09 | 66.11 | 54.95 | 68.04 | 48.56 | 44.95 |
The cash conversion cycle of Urban Outfitters Inc has shown some fluctuations over the past few years, ranging from around 44.95 days to 81.51 days. The cash conversion cycle represents the number of days it takes for a company to convert its resources into cash flows, including the time it takes to sell inventory, collect receivables, and pay its payables.
The trend in Urban Outfitters Inc's cash conversion cycle indicates that the company may have experienced challenges in managing its working capital efficiently. A longer cash conversion cycle may suggest that the company is taking longer to sell its inventory or collect payments from customers, which could tie up cash and impact liquidity.
It is important for Urban Outfitters Inc to closely monitor and potentially optimize its cash conversion cycle to ensure that it is effectively managing its cash flow and working capital. By streamlining its operations, improving inventory turnover, and enhancing its receivables collection process, the company can potentially reduce its cash conversion cycle and strengthen its financial position.