Victoria's Secret & Co (VSCO)
Cash ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 270,000 | 427,000 | 490,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 1,614,000 | 1,579,000 | 1,698,000 |
| Cash ratio | 0.17 | 0.27 | 0.29 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($270,000K
+ $—K)
÷ $1,614,000K
= 0.17
The cash ratio of Victoria's Secret & Co has shown a declining trend over the past three years. As of February 3, 2024, the cash ratio stands at 0.17, down from 0.27 in January 28, 2023, and 0.29 in January 29, 2022.
This decreasing trend indicates that the company may be holding less cash relative to its current liabilities, which could potentially raise concerns about its liquidity position. A lower cash ratio suggests that Victoria's Secret & Co may have less liquid assets available to cover its short-term financial obligations.
It is important for investors and stakeholders to closely monitor this trend in the cash ratio, as a declining ratio could indicate potential liquidity issues that may impact the company's ability to meet its short-term obligations. A lower cash ratio may also imply increased reliance on alternative sources of funding, such as borrowing or asset liquidation, to manage its cash flow needs.
Peer comparison
Feb 3, 2024