Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
TJX Cos. Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04).
The analysis of liquidity ratios over the reported periods reveals several notable trends in short-term financial health. The Current Ratio displayed an overall decrease from May 2019 through May 2025, with a pronounced peak in May 2020 at 2.2, indicating a temporary improvement in the company's ability to cover current liabilities with current assets. Following this peak, the ratio gradually declined and stabilized around the 1.16 to 1.23 range, suggesting consistent but moderate liquidity.
The Quick Ratio, a more stringent measure of liquidity excluding inventories, mirrored a similar pattern. It rose sharply to 0.96 in May 2020 from a low of 0.33 in November 2019, followed by a general decline and fluctuations predominantly between 0.35 and 0.59 in subsequent periods. This indicates periods of relatively healthier liquid asset coverage in early 2020, which lessened over time, reflecting more conservative quick asset availability relative to current liabilities.
The Cash Ratio also followed this trajectory, with a significant increase to 0.92 in May 2020 from 0.27 in November 2019, highlighting a substantial boost in immediately available cash or cash equivalents during that period. Afterward, the ratio decreased steadily, reaching a lower and more stable range between approximately 0.30 and 0.54 in the later quarters. This suggests that while cash reserves improved notably in mid-2020, they did not maintain that elevated level in the long term.
Overall, the data indicates that the company experienced a temporary enhancement in all liquidity measures around the second quarter of 2020. This could be attributed to strategic adjustments or external conditions that improved short-term financial flexibility. However, post this peak, all ratios declined and stabilized at comparatively lower levels, signaling normalized liquidity conditions that remain adequate but less robust than at the peak. The stability in later periods, despite the reduction, suggests a maintained balance between assets and liabilities without significant liquidity risk.
- Current Ratio
- Initial steady values around 1.2, a spike to 2.2 in May 2020, followed by a gradual decrease and stabilization near 1.16 to 1.23.
- Quick Ratio
- Lower values below 0.5 initially, sudden increase approaching 1.0 in May 2020, then a decline and fluctuation mostly between 0.35 and 0.59.
- Cash Ratio
- Similar to Quick Ratio with an increase from below 0.3 to above 0.9 in May 2020, followed by a steady reduction to around 0.30–0.54, indicating less cash buffer over time.
Current Ratio
TJX Cos. Inc., current ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||
| Current assets | 12,595) | 12,991) | 14,352) | 12,890) | 12,409) | 12,664) | 13,806) | 12,338) | 12,595) | 12,456) | 12,989) | 11,835) | 12,480) | 13,259) | 14,576) | 13,389) | 15,016) | 15,739) | 16,654) | 11,518) | 10,296) | 8,891) | 9,375) | 8,269) | 8,067) | ||||||||
| Current liabilities | 10,827) | 11,008) | 12,017) | 10,621) | 10,100) | 10,451) | 11,640) | 10,317) | 10,534) | 10,305) | 11,234) | 10,147) | 10,019) | 10,468) | 11,329) | 10,042) | 9,907) | 10,804) | 11,817) | 7,647) | 4,670) | 7,150) | 7,687) | 6,601) | 6,581) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Current ratio1 | 1.16 | 1.18 | 1.19 | 1.21 | 1.23 | 1.21 | 1.19 | 1.20 | 1.20 | 1.21 | 1.16 | 1.17 | 1.25 | 1.27 | 1.29 | 1.33 | 1.52 | 1.46 | 1.41 | 1.51 | 2.20 | 1.24 | 1.22 | 1.25 | 1.23 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.05 | 1.06 | 1.09 | 1.10 | 1.07 | 1.05 | 0.98 | 0.95 | 0.92 | 0.94 | 0.94 | 0.95 | 0.96 | 1.14 | 1.12 | 1.20 | 1.05 | 1.05 | 1.11 | 1.18 | 1.08 | ||||||||
| Home Depot Inc. | 1.09 | 1.11 | 1.13 | 1.15 | 1.34 | 1.35 | 1.30 | 1.31 | 1.27 | 1.41 | 1.39 | 1.18 | 1.11 | 1.01 | 1.13 | 1.06 | 1.10 | 1.23 | 1.36 | 1.30 | 1.17 | 1.08 | 1.08 | 1.10 | 1.04 | ||||||||
| Lowe’s Cos. Inc. | 1.01 | 1.09 | 1.13 | 1.22 | 1.17 | 1.23 | 1.21 | 1.26 | 1.25 | 1.10 | 1.20 | 1.11 | 1.17 | 1.02 | 1.19 | 1.16 | 1.17 | 1.19 | 1.38 | 1.30 | 1.20 | 1.01 | 1.04 | 1.06 | 1.09 | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04).
1 Q1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,595 ÷ 10,827 = 1.16
2 Click competitor name to see calculations.
The financial data reveals several key trends in the company's liquidity position over the analyzed periods.
- Current Assets
- Current assets show a general upward trend from May 2019 through the early part of 2021, peaking in October 2020 at approximately $16.7 billion. Following this peak, current assets experienced a gradual decline and stabilization, with minor fluctuations around the $12 to $14 billion range through 2024 and into early 2025. This indicates an initial build-up of liquid resources or inventories until late 2020, followed by a period of normalization or controlled asset levels.
- Current Liabilities
- Current liabilities present more volatility, with an initial increase from about $6.6 billion in mid-2019 to a significant rise reaching over $11.8 billion in October 2020. After this peak, liabilities fluctuate moderately, mostly between $9.9 and $12 billion in subsequent quarters up to early 2025. The increase in liabilities around late 2020 suggests elevated short-term obligations, possibly due to operational or financing activities during that period, before settling into a relatively stable range.
- Current Ratio
- The current ratio, calculated as current assets divided by current liabilities, exhibits notable variation across the timeline. Starting near 1.2 in 2019, the ratio climbs sharply to a substantial peak of 2.2 in May 2020, suggesting a temporary improvement in liquidity, likely driven by a significant decrease in current liabilities or an increase in current assets. After this spike, the current ratio declines and stabilizes around 1.16 to 1.25 through to early 2025, reflecting a more balanced liquidity position. The post-peak stabilization indicates consistent management of short-term assets and liabilities to maintain a healthy, but not excessively high, liquidity buffer.
Overall, the data suggests a period of heightened liquidity activity around mid-2020, possibly in response to external factors affecting operational or financial conditions. Following this, both current assets and liabilities moderate into more stable levels, with the current ratio reflecting a prudent balance between asset availability and short-term obligations. The company appears to have managed its liquidity effectively, maintaining current ratios above 1.1, which generally indicates sufficient coverage of short-term liabilities by current assets.
Quick Ratio
TJX Cos. Inc., quick ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 4,255) | 5,335) | 4,718) | 5,250) | 5,059) | 5,600) | 4,290) | 4,550) | 5,025) | 5,477) | 3,365) | 3,531) | 4,295) | 6,227) | 6,792) | 7,106) | 8,775) | 10,470) | 10,582) | 6,620) | 4,288) | 3,217) | 2,060) | 2,186) | 2,235) | ||||||||
| Accounts receivable, net | 594) | 549) | 599) | 521) | 542) | 529) | 560) | 548) | 587) | 563) | 571) | 556) | 576) | 518) | 615) | 616) | 621) | 461) | 464) | 444) | 172) | 386) | 443) | 377) | 393) | ||||||||
| Total quick assets | 4,849) | 5,884) | 5,317) | 5,771) | 5,601) | 6,129) | 4,850) | 5,098) | 5,612) | 6,040) | 3,936) | 4,087) | 4,871) | 6,744) | 7,407) | 7,722) | 9,397) | 10,931) | 11,046) | 7,065) | 4,460) | 3,603) | 2,503) | 2,563) | 2,628) | ||||||||
| Current liabilities | 10,827) | 11,008) | 12,017) | 10,621) | 10,100) | 10,451) | 11,640) | 10,317) | 10,534) | 10,305) | 11,234) | 10,147) | 10,019) | 10,468) | 11,329) | 10,042) | 9,907) | 10,804) | 11,817) | 7,647) | 4,670) | 7,150) | 7,687) | 6,601) | 6,581) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Quick ratio1 | 0.45 | 0.53 | 0.44 | 0.54 | 0.55 | 0.59 | 0.42 | 0.49 | 0.53 | 0.59 | 0.35 | 0.40 | 0.49 | 0.64 | 0.65 | 0.77 | 0.95 | 1.01 | 0.93 | 0.92 | 0.96 | 0.50 | 0.33 | 0.39 | 0.40 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.54 | 0.56 | 0.55 | 0.56 | 0.56 | 0.53 | 0.44 | 0.43 | 0.44 | 0.45 | 0.42 | 0.43 | 0.48 | 0.68 | 0.64 | 0.76 | 0.63 | 0.67 | 0.67 | 0.76 | 0.62 | ||||||||
| Home Depot Inc. | 0.23 | 0.23 | 0.25 | 0.25 | 0.34 | 0.32 | 0.25 | 0.27 | 0.22 | 0.26 | 0.26 | 0.18 | 0.22 | 0.20 | 0.32 | 0.30 | 0.37 | 0.47 | 0.68 | 0.69 | 0.48 | 0.23 | 0.23 | 0.26 | 0.21 | ||||||||
| Lowe’s Cos. Inc. | 0.15 | 0.11 | 0.19 | 0.26 | 0.18 | 0.08 | 0.09 | 0.22 | 0.18 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | 0.28 | 0.52 | 0.60 | 0.34 | 0.06 | 0.06 | 0.13 | 0.18 | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04).
1 Q1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,849 ÷ 10,827 = 0.45
2 Click competitor name to see calculations.
The financial data demonstrates volatile movements in the liquidity position over the observed periods. There is a notable fluctuation in total quick assets, current liabilities, and the resulting quick ratio, revealing changing short-term financial health and liquidity management challenges.
- Total Quick Assets
- The total quick assets begin at $2,628 million in May 2019 and show an initial decline through November 2019 to $2,503 million. A sharp increase occurs in early 2020, peaking at $11,046 million in October 2020. After this peak, there is a gradual downward trend, with a few intermittent increases, settling around $4,849 million by May 2025. The pattern suggests a significant accumulation of liquid assets in mid-2020 followed by a steady reduction in subsequent years.
- Current Liabilities
- Current liabilities start at $6,581 million in May 2019, trending generally upward with some volatility. The figure peaks at $12,017 million by November 2024 before slightly decreasing to $10,827 million in May 2025. There is a notable spike around late 2020, mirroring the increase in quick assets, which implies simultaneous rises in obligations along with liquid assets during certain periods. The overall increase indicates growing short-term obligations over the timeframe.
- Quick Ratio
- The quick ratio exhibits considerable variation, starting below 0.5 in the early periods, rising above 1.0 in January 2021, and then trending downward after April 2021. Most subsequent values remain below 0.6, often dipping near 0.4 or lower by 2025. The highest point around early 2021 suggests a momentary strengthening of liquidity, but over time the ratio indicates a weaker ability to cover current liabilities with liquid assets. This decline signals potential liquidity risk or more aggressive liability management.
Overall, the data reveals pronounced liquidity volatility. The surge in quick assets and liabilities in mid to late 2020 suggests a response to external conditions or strategic repositioning, followed by a contraction phase. The persistent decline in the quick ratio after early 2021 highlights a gradual erosion of liquidity cushions relative to short-term debts, possibly necessitating closer monitoring of liquidity risk and working capital strategies going forward.
Cash Ratio
TJX Cos. Inc., cash ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 4,255) | 5,335) | 4,718) | 5,250) | 5,059) | 5,600) | 4,290) | 4,550) | 5,025) | 5,477) | 3,365) | 3,531) | 4,295) | 6,227) | 6,792) | 7,106) | 8,775) | 10,470) | 10,582) | 6,620) | 4,288) | 3,217) | 2,060) | 2,186) | 2,235) | ||||||||
| Total cash assets | 4,255) | 5,335) | 4,718) | 5,250) | 5,059) | 5,600) | 4,290) | 4,550) | 5,025) | 5,477) | 3,365) | 3,531) | 4,295) | 6,227) | 6,792) | 7,106) | 8,775) | 10,470) | 10,582) | 6,620) | 4,288) | 3,217) | 2,060) | 2,186) | 2,235) | ||||||||
| Current liabilities | 10,827) | 11,008) | 12,017) | 10,621) | 10,100) | 10,451) | 11,640) | 10,317) | 10,534) | 10,305) | 11,234) | 10,147) | 10,019) | 10,468) | 11,329) | 10,042) | 9,907) | 10,804) | 11,817) | 7,647) | 4,670) | 7,150) | 7,687) | 6,601) | 6,581) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Cash ratio1 | 0.39 | 0.48 | 0.39 | 0.49 | 0.50 | 0.54 | 0.37 | 0.44 | 0.48 | 0.53 | 0.30 | 0.35 | 0.43 | 0.59 | 0.60 | 0.71 | 0.89 | 0.97 | 0.90 | 0.87 | 0.92 | 0.45 | 0.27 | 0.33 | 0.34 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.54 | 0.56 | 0.55 | 0.56 | 0.56 | 0.53 | 0.44 | 0.43 | 0.44 | 0.45 | 0.42 | 0.43 | 0.48 | 0.68 | 0.64 | 0.76 | 0.63 | 0.67 | 0.67 | 0.76 | 0.62 | ||||||||
| Home Depot Inc. | 0.04 | 0.06 | 0.05 | 0.06 | 0.18 | 0.17 | 0.09 | 0.12 | 0.05 | 0.12 | 0.10 | 0.05 | 0.09 | 0.08 | 0.19 | 0.17 | 0.24 | 0.34 | 0.58 | 0.58 | 0.37 | 0.12 | 0.11 | 0.14 | 0.10 | ||||||||
| Lowe’s Cos. Inc. | 0.15 | 0.11 | 0.19 | 0.26 | 0.18 | 0.08 | 0.09 | 0.22 | 0.18 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | 0.28 | 0.52 | 0.60 | 0.34 | 0.06 | 0.06 | 0.13 | 0.18 | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04).
1 Q1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,255 ÷ 10,827 = 0.39
2 Click competitor name to see calculations.
The analysis of the financial data over the observed periods reveals several noteworthy trends in liquidity and short-term financial position.
- Total Cash Assets
- Total cash assets exhibit significant fluctuations over the analyzed timeframe. Initially, cash assets showed a gradual decline from 2,235 million USD in May 2019 to 2,060 million USD by November 2019. A marked increase occurred starting February 2020, with cash assets peaking at 10,582 million USD in October 2020. Following this peak, there is a general downward trend punctuated by temporary recoveries, reaching approximately 5,477 million USD by January 2023. From this point onward, cash assets mostly decline again, falling to 4,255 million USD by May 2025. The data indicates periods of substantial cash accumulation followed by drawdowns, reflecting possible operational or strategic cash flow management adjustments.
- Current Liabilities
- Current liabilities reveal a pattern of volatility with an overall upward trajectory. Starting at 6,581 million USD in May 2019, liabilities rose sharply to 11,817 million USD by October 2020, closely mirroring the increase in cash assets. After this peak, current liabilities fluctuate around the 10,000 to 12,000 million USD range, showing slight declines and increases but remaining elevated through May 2025, when they settle near 10,827 million USD. This behavior suggests the company has increased its short-term obligations substantially during the period, maintaining a relatively high liability level in relation to prior years.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, reflects the interplay between cash assets and current liabilities. Initially low at about 0.34 and declining further to 0.27 by November 2019, it underwent a steep rise to 0.97 in January 2021 amid the surge in cash assets. Afterwards, the ratio shows a diminishing trend, falling to approximately 0.30 by October 2022, then temporarily rebounding close to 0.54 by May 2024, before reducing again toward 0.39 in May 2025. Overall, despite some recovery phases, the cash ratio remains below 1.0 throughout, indicating that cash assets alone have consistently been insufficient to fully cover current liabilities.
In summary, the company experienced a period of cash asset accumulation mainly during 2020, accompanied by simultaneously rising current liabilities. Subsequently, both cash assets and the cash ratio declined, with current liabilities remaining elevated. This pattern suggests a strategic management of liquidity with an emphasis on maintaining significant short-term obligations while cash reserves normalize after a period of buildup. The cash ratio's persistent position below one reflects a level of liquidity risk that should be monitored, particularly given the fluctuations and moderate downward trends in cash reserves relative to liabilities toward the end of the period.