Victoria's Secret & Co (VSCO)
Cash ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 270,000 | 124,000 | 131,000 | 132,000 | 427,000 | 126,000 | 201,000 | 204,000 | 490,000 | 331,000 | 293,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,614,000 | 1,368,000 | 1,407,000 | 1,369,000 | 1,579,000 | 1,332,000 | 1,445,000 | 1,451,000 | 1,698,000 | 1,598,000 | 1,435,000 |
| Cash ratio | 0.17 | 0.09 | 0.09 | 0.10 | 0.27 | 0.09 | 0.14 | 0.14 | 0.29 | 0.21 | 0.20 |
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 fluctuated over the past few quarters, ranging from as low as 0.09 to as high as 0.29. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
In this case, the cash ratio has shown some volatility, with a noticeable peak in Jan 2022 at 0.29 and a subsequent drop in Oct 2022 to 0.09. The trend seems to be slightly inconsistent, with some quarters showing stronger liquidity positions than others.
It is essential for investors and stakeholders to closely monitor the cash ratio of Victoria's Secret & Co to assess its ability to manage short-term obligations and withstand potential financial challenges. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's liquidity position.
Peer comparison
Feb 3, 2024