Victoria's Secret & Co (VSCO)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 270,000 | 427,000 | 490,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 152,000 | 141,000 | 162,000 |
| Total current liabilities | US$ in thousands | 1,614,000 | 1,579,000 | 1,698,000 |
| Quick ratio | 0.26 | 0.36 | 0.38 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($270,000K
+ $—K
+ $152,000K)
÷ $1,614,000K
= 0.26
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term liabilities.
For Victoria's Secret & Co, the quick ratio has been declining over the past three years, decreasing from 0.38 in January 2022 to 0.36 in January 2023, and further down to 0.26 in February 2024. This trend suggests that the company may be facing challenges in converting its current assets into cash quickly to cover its short-term obligations.
A quick ratio of 0.26 in February 2024 indicates that Victoria's Secret & Co may have limited liquid assets relative to its current liabilities, which could potentially lead to liquidity issues and difficulties in meeting short-term financial commitments. It is important for the company to closely monitor its liquidity position and take necessary actions to improve its ability to cover short-term obligations with liquid assets.
Peer comparison
Feb 3, 2024