Urban Outfitters Inc (URBN)

Quick ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cash	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
Receivables	US$ in thousands	67,008	70,339	63,760	89,952	88,288
Total current liabilities	US$ in thousands	994,205	890,374	981,473	906,132	638,770
Quick ratio		0.54	0.51	0.52	0.73	0.82

January 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($178,321K + $286,744K + $67,008K) ÷ $994,205K
= 0.54

The quick ratio of Urban Outfitters Inc has shown a declining trend over the past five years, decreasing from 0.82 in January 2020 to 0.54 in January 2024. This indicates a reduction in the company's ability to meet its short-term obligations with its most liquid assets.

A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term liabilities with its quick assets alone. The decreasing trend in the quick ratio may raise concerns about Urban Outfitters Inc's liquidity position and ability to cover immediate financial obligations without relying heavily on inventory or other less liquid assets.

Further analysis and monitoring of Urban Outfitters Inc's liquidity position and management of its current assets may be warranted to assess the company's short-term financial health and potential risks.