Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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Liquidity Ratios (Summary)
Bed Bath & Beyond Inc., liquidity ratios
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Current ratio | |||||||
| Quick ratio | |||||||
| Cash ratio |
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
- Current Ratio
- The current ratio showed a general decline over the period analyzed, decreasing from 1.87 in early 2017 to 1.14 by early 2022. This indicates a reduction in the company's ability to cover short-term liabilities with short-term assets, reflecting potentially tighter liquidity conditions.
- Quick Ratio
- The quick ratio experienced a gradual increase from 0.24 in 2017 to 0.59 in 2021, suggesting an improvement in the company's immediate liquidity excluding inventory. However, in 2022, it sharply dropped back to 0.21, the lowest value in the period, indicating a significant weakening in ability to meet short-term obligations without relying on inventory sales.
- Cash Ratio
- The cash ratio mirrored the quick ratio trend precisely, starting at 0.24 in 2017, rising steadily to 0.59 in 2021, and then declining sharply to 0.21 in 2022. This parallel movement implies that cash and cash equivalents constituted a similar proportion of liquid assets as those reflected in the quick ratio, with a notable liquidity decline in the most recent year.
Current Ratio
Bed Bath & Beyond Inc., current ratio calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Current ratio1 | |||||||
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Current Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Current Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets displayed a slight increase from 3,810,744 thousand USD in February 2017 to a peak of 3,971,078 thousand USD in March 2018. Subsequently, there was a gradual decline over the following years, dropping to 2,363,154 thousand USD by February 2022. This overall downward trend in the latter years indicates a reduction in liquid and short-term assets.
- Current Liabilities
- Current liabilities increased from 2,032,501 thousand USD in February 2017 to 2,466,526 thousand USD by February 2020, indicating a rising short-term obligation during this period. Afterward, they decreased to 2,074,787 thousand USD by February 2022. Hence, liabilities peaked around 2020 and then declined, reflecting possible efforts in managing or repaying short-term debts.
- Current Ratio
- The current ratio started relatively strong at 1.87 in 2017, slightly fluctuated around 1.8 to 1.88 until 2019, and then exhibited a declining trend, reaching 1.14 by February 2022. The decrease in the current ratio, close to the threshold of 1, suggests diminishing short-term liquidity and potentially tighter working capital conditions over the analyzed timeframe.
- Overall Analysis
- The financial data reveal a general decrease in current assets alongside a peak and subsequent decline in current liabilities, leading to a pronounced decrease in the current ratio. This suggests that the liquidity position of the entity weakened particularly after 2019. The company may have faced challenges in maintaining its ability to cover short-term obligations with its short-term assets, indicating potential liquidity pressure in the more recent reporting periods.
Quick Ratio
Bed Bath & Beyond Inc., quick ratio calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | |||||||
| Short term investment securities | |||||||
| Accounts receivable | |||||||
| Total quick assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Quick ratio1 | |||||||
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Quick Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Quick Assets Trend
- The total quick assets demonstrated a significant upward trend from February 2017 to February 2020, increasing from approximately 488 million US dollars to roughly 1.39 billion US dollars. This increase indicates an improvement in liquid assets available within this period. However, in the year ending February 2022, the quick assets sharply declined to about 440 million US dollars, indicating a considerable reduction in liquid assets.
- Current Liabilities Trend
- Current liabilities fluctuated over the analyzed period, rising from approximately 2.03 billion US dollars in early 2017 to a peak around 2.47 billion US dollars in early 2020. Subsequently, there was a gradual decline in liabilities to about 2.07 billion US dollars by February 2022. This trend reflects moderate variation but an overall decrease in short-term obligations by the end of the period.
- Quick Ratio Analysis
- The quick ratio showed a steady improvement from 0.24 in February 2017 to 0.59 in February 2021, suggesting enhancement in the liquidity position during these years. This positive trend reflects better coverage of current liabilities by quick assets. Nevertheless, a sharp decline occurred in the final reported year, with the ratio dropping to 0.21, indicating a weakened liquidity position and a potential challenge in meeting short-term obligations with readily available assets.
- Overall Liquidity Insights
- Overall, the company's liquidity improved notably up to early 2021, as evidenced by the increase in quick assets and quick ratio, implying greater ability to cover current liabilities without relying on inventory. However, the significant decline in quick assets and quick ratio by February 2022 points to a substantial deterioration in short-term financial health, which could be a cause for closer scrutiny and analysis of working capital management.
Cash Ratio
Bed Bath & Beyond Inc., cash ratio calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | |||||||
| Short term investment securities | |||||||
| Total cash assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Cash ratio1 | |||||||
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Cash Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- Over the period analyzed, total cash assets exhibited a generally increasing trend from 2017 to 2020, rising from approximately 488 million US dollars to nearly 1.39 billion US dollars. This represents substantial growth in liquidity during these years. However, in the subsequent two years, there was a notable decline, with cash assets decreasing sharply to around 439 million US dollars by 2022. This reversal suggests a significant reduction in cash reserves after the peak in 2020.
- Current Liabilities
- Current liabilities demonstrated fluctuations over the examined periods. Starting at approximately 2.03 billion US dollars in 2017, liabilities increased slightly in 2018, reaching about 2.17 billion US dollars. This was followed by a decrease in 2019 to roughly 2.08 billion dollars, then a rise again in 2020 to nearly 2.47 billion dollars. After peaking in 2020, liabilities decreased for the next two years, falling to approximately 2.07 billion US dollars by 2022. The pattern indicates variability in short-term obligations, with a peak corresponding to the highest recorded total cash assets.
- Cash Ratio
- The cash ratio, a measure of the company’s ability to cover current liabilities with cash assets, increased steadily from 0.24 in 2017 to 0.59 in 2021, reflecting improved short-term liquidity. This improvement suggests a growing capacity to meet immediate liabilities with liquid assets during these years. However, in 2022, the cash ratio decreased sharply to 0.21, indicating a reduced ability to cover current liabilities using available cash, which may point to a potential liquidity concern.