Williams-Sonoma Inc (WSM)
Quick ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,212,980 | 1,262,010 | 1,262,010 | 367,344 | 367,344 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | 122,914 | — | 115,685 |
| Total current liabilities | US$ in thousands | 1,911,970 | 1,880,320 | 1,880,320 | 1,636,450 | 1,636,450 |
| Quick ratio | 0.63 | 0.67 | 0.74 | 0.22 | 0.30 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,212,980K
+ $—K
+ $—K)
÷ $1,911,970K
= 0.63
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets.
Analyzing the quick ratio of Williams-Sonoma Inc over the past few years, we observe the following trend:
- As of January 29, 2023, the quick ratio was 0.30, indicating that the company had $0.30 of liquid assets available to cover each dollar of current liabilities.
- By January 31, 2023, the quick ratio decreased to 0.22, signaling a decline in the company's ability to meet its short-term obligations with liquid assets.
- The quick ratio improved significantly by January 28, 2024, reaching 0.74. This suggests that the company had strengthened its liquidity position compared to the previous year.
- However, the quick ratio slightly decreased to 0.67 by January 31, 2024, indicating a slight deterioration in the company's ability to cover its current liabilities with liquid assets.
- As of January 31, 2025, the quick ratio further declined to 0.63, potentially raising concerns about the company's liquidity position.
Overall, the fluctuation in Williams-Sonoma Inc's quick ratio over the years suggests varying levels of liquidity and emphasizes the importance of closely monitoring the company's ability to meet its short-term obligations with liquid assets.