Williams-Sonoma Inc (WSM)
Cash ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,262,010 | 367,344 | 850,338 | 1,200,340 | 432,162 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,880,320 | 1,636,450 | 1,771,690 | 1,848,000 | 1,609,560 |
| Cash ratio | 0.67 | 0.22 | 0.48 | 0.65 | 0.27 |
January 28, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,262,010K
+ $—K)
÷ $1,880,320K
= 0.67
The cash ratio for Williams-Sonoma Inc has fluctuated over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
In the latest fiscal year ending January 28, 2024, Williams-Sonoma Inc had a cash ratio of 0.67, showing an increase from the prior year's cash ratio of 0.22 as of January 29, 2023. This significant improvement suggests that the company had a higher proportion of cash and cash equivalents relative to its short-term obligations, which is a positive indicator of liquidity.
Comparing to previous years, the cash ratio was 0.48 as of January 30, 2022, 0.65 as of January 31, 2021, and 0.27 as of February 2, 2020. The trend indicates variability in the company's ability to cover short-term liabilities with cash over this period.
Overall, the upward trend in the cash ratio from 2020 to 2024 suggests that Williams-Sonoma Inc has improved its liquidity position and may be in a stronger financial position to meet its short-term obligations. However, further analysis of the company's overall liquidity position and cash management practices would provide a more in-depth understanding of its financial health.