Williams-Sonoma Inc (WSM)
Quick ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,212,980 | 826,784 | 1,265,260 | 1,254,790 | 1,262,010 | 1,262,010 | 698,807 | 698,807 | 514,435 | 514,435 | 297,291 | 367,344 | 367,344 | 113,058 | 113,058 | 124,944 | 324,835 | 324,835 | 850,338 | 850,338 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | 122,914 | — | 124,238 | — | 117,045 | — | — | 115,685 | — | 125,842 | — | 122,946 | — | — | 131,683 |
| Total current liabilities | US$ in thousands | 1,911,970 | 1,845,310 | 1,758,800 | 1,720,960 | 1,880,320 | 1,880,320 | 1,788,990 | 1,788,990 | 1,663,850 | 1,663,850 | 1,701,820 | 1,636,450 | 1,636,450 | 1,854,720 | 1,854,720 | 1,811,040 | 1,743,640 | 1,743,640 | 1,771,690 | 1,771,690 |
| Quick ratio | 0.63 | 0.45 | 0.72 | 0.73 | 0.67 | 0.74 | 0.39 | 0.46 | 0.31 | 0.38 | 0.17 | 0.22 | 0.30 | 0.06 | 0.13 | 0.07 | 0.26 | 0.19 | 0.48 | 0.55 |
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 of Williams-Sonoma Inc shows fluctuations over the periods provided, ranging from a low of 0.06 to a high of 0.74. Generally, a quick ratio below 1 indicates potential liquidity constraints, as the company may not have enough liquid assets to cover its current liabilities in the short term.
In the earlier periods, from April 2022 to October 2023, the quick ratio remained below 0.5, indicating a potential risk of liquidity issues. However, there was an improvement in liquidity from January 2024 to July 2024, with the quick ratio consistently above 0.7.
The quick ratio dipped again in the last reported period, January 2025, to 0.63, suggesting a slight decrease in liquidity compared to the previous periods. Overall, fluctuations in the quick ratio may signal changes in the company's ability to meet short-term obligations with its liquid assets. A detailed analysis of the components contributing to the changes in the quick ratio would provide further insights into Williams-Sonoma Inc's liquidity position.