Williams-Sonoma Inc (WSM)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,719,800 | 2,347,340 | 2,032,130 | 1,898,830 | 2,036,080 | 2,060,730 | 1,928,720 | 1,928,850 | 2,323,890 | 2,176,720 | 2,073,710 | 1,949,000 | 2,467,080 | 2,136,960 | 2,255,430 | 2,149,040 | 1,755,640 | 1,659,240 | 1,558,020 | 1,485,650 |
| 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 |
| Current ratio | 1.45 | 1.31 | 1.22 | 1.12 | 1.24 | 1.11 | 1.06 | 1.11 | 1.31 | 1.29 | 1.31 | 1.28 | 1.34 | 1.46 | 1.36 | 1.28 | 1.09 | 1.29 | 1.31 | 1.33 |
January 28, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,719,800K ÷ $1,880,320K
= 1.45
The current ratio for Williams-Sonoma Inc has shown some fluctuations over the past few quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities.
Looking at the trend in the current ratio over the past few quarters, we can observe that it has generally been above 1, which is a positive sign. A current ratio of 1.45 as of January 28, 2024, indicates that Williams-Sonoma Inc had $1.45 in current assets for every $1 of current liabilities.
The slight fluctuations in the current ratio over the quarters suggest changes in the company's liquidity position. For instance, the current ratio peaked at 1.46 on November 1, 2020, and dipped to 1.06 on July 31, 2022. However, overall, the current ratio has remained relatively stable, with the latest ratio of 1.45 on January 28, 2024, showing an improvement from the previous quarter.
In general, a current ratio above 1 is considered healthy as it indicates that the company can cover its short-term obligations. However, investors and analysts typically look for a current ratio that is not too high to avoid potential inefficiencies in managing the company's current assets. Williams-Sonoma Inc's current ratio trend suggests a reasonable level of liquidity over the past few quarters.