Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
---|---|---|---|---|---|---|---|
Current ratio | |||||||
Quick ratio | |||||||
Cash ratio |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
- Current Ratio
- The current ratio exhibits a fluctuating trend over the observed periods. Initially, it decreased from 1.24 in early 2018 to a low of 0.61 in early 2020, indicating a declining liquidity position. However, starting in 2021, the current ratio increased significantly, reaching 2.91 in early 2022 and slightly decreasing to 2.84 in early 2023. This suggests a substantial improvement in the company's ability to cover short-term liabilities with current assets in recent years.
- Quick Ratio
- The quick ratio remains very low from 2018 through 2021, fluctuating between 0.05 and 0.17, which may imply limited liquid assets relative to current liabilities. A notable rise occurs in 2022, jumping to 2.1, followed by a modest decrease to 1.77 in 2023. This marked increase reflects a significant enhancement in the company's immediate liquidity, excluding inventory, suggesting better short-term financial stability.
- Cash Ratio
- The cash ratio shows a similar pattern to the quick ratio, starting at extremely low levels from 0.03 in 2018 and dipping to 0.01 in 2019. A gradual increase is observed through 2021 (0.11), culminating in a sharp rise to 2.05 in 2022, before a slight reduction to 1.71 in 2023. This trend indicates a considerable growth in the company's most liquid assets, such as cash and cash equivalents, enhancing its capacity to satisfy the most immediate obligations.
- Overall Liquidity Insight
- There is a clear transition from constrained liquidity positions during 2018 to 2021 towards a markedly stronger liquidity posture in 2022 and 2023 across all three ratios. The substantial upticks in current, quick, and cash ratios since 2021 reflect improvements in asset management or possibly a change in capital structure. Despite the slight declines from 2022 to 2023, the liquidity levels remain significantly higher than in earlier periods, indicating an overall enhanced short-term financial health.
Current Ratio
Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
---|---|---|---|---|---|---|---|
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: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibited a fluctuating trend over the analyzed periods. Starting at 644,930 thousand USD in early 2018, the amount slightly increased in 2019 to 682,693 thousand USD but then declined to 596,952 thousand USD in 2020. A significant rise occurred in 2021, reaching 801,484 thousand USD, followed by a pronounced surge in 2022, with current assets peaking at 3,091,442 thousand USD. In 2023, current assets slightly decreased to 2,512,664 thousand USD but remained well above the values reported in previous years.
- Current Liabilities
- Current liabilities showed notable growth from 519,335 thousand USD in early 2018 to a high of 982,912 thousand USD in 2020. After a slight reduction in 2021 to 921,632 thousand USD, liabilities increased again in 2022 to 1,063,758 thousand USD, before falling to 885,973 thousand USD in 2023. Despite this recent decrease, liabilities remain substantially elevated compared to the initial period.
- Current Ratio
- The current ratio experienced substantial variation across the years. It began at a moderate 1.24 in 2018 but deteriorated sharply to 0.74 in 2019 and further declined to 0.61 in 2020, indicating decreased short-term liquidity. An improvement was noted in 2021 with the ratio rising to 0.87. The most significant improvement occurred in 2022, when the ratio escalated to 2.91, reflecting a strong liquidity position. This high ratio was sustained in 2023, with a minor decrease to 2.84. The marked increase in the current ratio in recent years corresponds with the large increase in current assets, likely indicating enhanced capability to meet short-term obligations.
Quick Ratio
Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Cash and cash equivalents | |||||||
Restricted cash | |||||||
Accounts receivable, net | |||||||
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: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibit a significant upward trend over the observed periods. Starting at approximately 49 million US dollars in early 2018, the value declined slightly in 2019 before nearly doubling in 2020. This was followed by a substantial increase in 2021 and a sharp peak in 2022, reaching over 2.2 billion US dollars. However, in 2023, the total quick assets decreased notably to about 1.57 billion US dollars, remaining significantly higher than in the earlier years.
- Current Liabilities
- Current liabilities show considerable fluctuations across the years, with an overall rising trend from 2018 to 2022. The liabilities increased from around 519 million US dollars in 2018 to over 1 billion US dollars in 2022. Noteworthy is the peak in 2020 and 2022, following a slight dip in 2021. In 2023, current liabilities declined to approximately 886 million US dollars, indicating a reduction from the previous year's level yet still elevated compared to the initial year.
- Quick Ratio
- The quick ratio demonstrates a marked improvement throughout the period. Initially, the ratio was consistently low, starting at 0.09 in 2018 and dropping to 0.05 in 2019, indicating limited liquidity relative to current liabilities. Subsequently, the ratio increased steadily from 2020 onwards, rising to 0.1, then 0.17, and experiencing a substantial jump to 2.1 in 2022. Although it slightly decreased to 1.77 in 2023, the ratio remained well above the earlier years, reflecting a strengthened liquidity position in the latter periods.
Cash Ratio
Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Cash and cash equivalents | |||||||
Restricted cash | |||||||
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: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets exhibited significant fluctuation over the observed periods. Initially, there was a decrease from approximately 17,907 thousand USD to 5,803 thousand USD between 2018 and 2019. This was followed by a substantial increase reaching 47,658 thousand USD in 2020 and continuing to rise sharply to 100,446 thousand USD in 2021. The most notable growth occurred between 2021 and 2022, with cash assets peaking at 2,177,889 thousand USD. However, in the last year observed, 2023, cash assets declined to 1,511,763 thousand USD. Overall, the trend highlights a major buildup of cash reserves in recent years, despite the decrease in the final period.
- Current liabilities
- Current liabilities showed an increasing trend from 2018 through 2020, rising from 519,335 thousand USD to 982,912 thousand USD. There was a slight decline in 2021 to 921,632 thousand USD, followed by another increase in 2022 to 1,063,758 thousand USD. The most recent data in 2023 indicates a decrease in current liabilities to 885,973 thousand USD. The overall pattern suggests some volatility but generally a growing level of current liabilities over the period.
- Cash ratio
- The cash ratio, reflecting the ability to cover current liabilities with cash assets, was initially very low, at 0.03 in 2018 and decreased further to 0.01 in 2019. A gradual improvement began in 2020 with a ratio of 0.05, followed by more marked increases to 0.11 in 2021. A dramatic rise occurred in 2022 when the ratio reached 2.05, indicating cash assets exceeded current liabilities by a significant margin. In 2023, the cash ratio slightly decreased to 1.71 but remained well above earlier years. This trend corroborates the growth in cash assets relative to liabilities, suggesting stronger liquidity and financial stability in the later years.