Williams-Sonoma Inc (WSM)
Current ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,719,800 | 2,036,080 | 2,323,890 | 2,467,080 | 1,755,640 |
| Total current liabilities | US$ in thousands | 1,880,320 | 1,636,450 | 1,771,690 | 1,848,000 | 1,609,560 |
| Current ratio | 1.45 | 1.24 | 1.31 | 1.34 | 1.09 |
January 28, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,719,800K ÷ $1,880,320K
= 1.45
The current ratio of Williams-Sonoma Inc has shown a fluctuating trend over the past five years. As of January 28, 2024, the current ratio stands at 1.45, indicating that the company's current assets exceed its current liabilities by a margin of 1.45 times. This suggests that Williams-Sonoma Inc has a strong ability to meet its short-term obligations using its current assets.
Comparing this to previous years, we observe that the current ratio has improved compared to the prior year but remains slightly lower than the ratio from two years ago. This improvement signifies a more favorable liquidity position for the company in the current fiscal year. However, it is important to note that the current ratio has experienced fluctuations over the past five years, with varying levels of liquidity.
Overall, the current ratio of Williams-Sonoma Inc indicates a relatively healthy liquidity position, although it has shown some variability in recent years. It is recommended for investors and analysts to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health.