Williams-Sonoma Inc (WSM)
Cash ratio
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,262,010 | 698,807 | 514,435 | 297,291 | 367,344 | 113,058 | 124,944 | 324,835 | 850,338 | 656,898 | 655,211 | 639,670 | 1,200,340 | 773,170 | 947,760 | 861,002 | 432,162 | 155,025 | 120,467 | 107,683 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,880,320 | 1,788,990 | 1,663,850 | 1,701,820 | 1,636,450 | 1,854,720 | 1,811,040 | 1,743,640 | 1,771,690 | 1,691,620 | 1,578,830 | 1,519,270 | 1,848,000 | 1,460,130 | 1,664,160 | 1,682,090 | 1,609,560 | 1,288,910 | 1,186,880 | 1,114,220 |
| Cash ratio | 0.67 | 0.39 | 0.31 | 0.17 | 0.22 | 0.06 | 0.07 | 0.19 | 0.48 | 0.39 | 0.41 | 0.42 | 0.65 | 0.53 | 0.57 | 0.51 | 0.27 | 0.12 | 0.10 | 0.10 |
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 years, ranging from a low of 0.06 to a high of 0.67. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. A higher ratio indicates a stronger ability to meet short-term liabilities using cash on hand.
In January 2024, the cash ratio was 0.67, suggesting that the company had a significant amount of cash and cash equivalents relative to its current liabilities. This indicates a strong liquidity position. Conversely, in October 2022 and July 2022, the cash ratio was only 0.06 and 0.07, respectively, indicating a lower ability to cover short-term obligations with cash on hand during those periods.
Overall, it is essential to consider the trend of the cash ratio over time to assess Williams-Sonoma Inc's liquidity position effectively. A consistent high or increasing cash ratio may indicate a favorable liquidity position, while a declining ratio could signal potential liquidity challenges for the company.