Williams-Sonoma Inc. (NYSE:WSM)

Current Ratio

The current ratio displayed fluctuations over the analyzed periods. Starting at 1.58 in early 2019, it declined substantially to 1.09 by early 2020, indicating a reduction in short-term liquidity. Thereafter, the ratio improved to 1.34 in 2021 and slightly decreased to 1.31 in 2022. By 2023, the ratio dipped modestly to 1.24 before rising again to 1.45 in early 2024. Overall, the current ratio suggests some variability in the company's ability to cover short-term liabilities with current assets, with a notable recovery in the latest period.

Quick Ratio

The quick ratio experienced considerable volatility across the years. Beginning at 0.42 in 2019, it declined to 0.34 in 2020, indicating a decrease in the company's immediate liquidity excluding inventory. This was followed by a significant increase to 0.73 in 2021, suggesting improved liquid asset availability. However, in 2022, it dropped to 0.55, then sharply decreased to a low of 0.3 in 2023. The ratio rebounded again to 0.74 by early 2024, reflecting enhanced liquid asset coverage in the most recent period. These variations demonstrate inconsistent liquidity management during the timeframe.

Cash Ratio

The cash ratio showed similar patterns of fluctuation. Initially, it was 0.32 in 2019, decreasing to 0.27 in 2020, which indicates a reduction in the most liquid assets relative to current liabilities. It then rose significantly to 0.65 in 2021, declining subsequently to 0.48 in 2022 and further to 0.22 in 2023, reflecting periods of reduced cash reserves. By early 2024, the cash ratio increased once more to 0.67, denoting improved cash holdings relative to short-term obligations. This indicates substantial variability in cash reserves throughout the years, with a marked improvement in the latest period.

Current Assets

The current assets show a generally increasing trend over the reported periods, beginning at approximately 1.69 billion USD in early 2019 and reaching nearly 2.72 billion USD by early 2024. There was a notable peak in early 2021 around 2.47 billion USD, followed by a slight decline in 2022 and 2023, before rising again sharply in 2024. This indicates an overall growth in liquidity and potentially improved asset management or expansion.

Current Liabilities

Current liabilities increased significantly from about 1.07 billion USD in early 2019 to a peak of approximately 1.85 billion USD in early 2021. After a slight decrease in 2022 and 2023, liabilities rose again in 2024, reaching around 1.88 billion USD. This pattern suggests an increasing use of short-term obligations over the years, with fluctuations possibly reflecting changes in operational financing or working capital management.

Current Ratio

The current ratio, representing liquidity, decreased from 1.58 in 2019 to a low of 1.09 in 2020, indicating a tighter liquidity position during that period. It then improved moderately to 1.34 in 2021 and remained relatively stable around 1.24 to 1.31 in the following years before increasing again to 1.45 in 2024. Overall, the company maintained its ability to cover short-term liabilities with current assets, though the dip in 2020 points to a potentially more constrained liquidity environment that was recovered in subsequent years.

Total quick assets

The total quick assets exhibited notable fluctuations over the analyzed period. Beginning at approximately $446 million in early 2019, the figure rose steadily to reach a peak of around $1.34 billion in early 2021. This increase indicates a significant improvement in liquid assets available to cover short-term liabilities during this time. However, following this peak, there was a decline in 2022 and 2023, reaching a low near $483 million. The trend reversed again in early 2024 with a substantial increase to approximately $1.38 billion, the highest level in the dataset.

Current liabilities

Current liabilities showed an overall increasing trend throughout the period. Starting from roughly $1.07 billion in 2019, liabilities rose consistently year-over-year, reaching nearly $1.88 billion by early 2024. While there was a slight decrease between early 2021 and early 2023, the general pattern was upward, signaling growing short-term obligations over time.

Quick ratio

The quick ratio mirrored the fluctuations in quick assets relative to current liabilities. Initially, the ratio decreased from 0.42 in 2019 to a low of 0.3 in early 2023, indicating a reduction in liquid assets compared to short-term liabilities and potentially tighter liquidity conditions. Between early 2020 and early 2021, there was a pronounced improvement, rising to 0.73, followed by a decline and then a recovery to 0.74 in early 2024. This final increase suggests enhanced short-term liquidity and a stronger ability to meet immediate financial obligations without relying on inventory sales.

The financial data reveals several notable trends in the liquidity position and short-term obligations over the six-year period under review.

Total Cash Assets

The total cash assets exhibit significant fluctuations. Initially, cash assets rose from approximately 339 million in early 2019 to a peak of around 1.2 billion by early 2021. This was followed by a sharp decline in 2022 to approximately 850 million and a further drop in 2023 to about 367 million. However, in early 2024, cash assets surged again to more than 1.26 billion, reaching the highest level recorded during the period.

Current Liabilities

Current liabilities have generally increased over the period, beginning at about 1.07 billion in early 2019 and peaking near 1.85 billion in 2021. A mild reduction occurred in 2022 and 2023, with values around 1.77 billion and 1.64 billion, respectively. The most recent data from early 2024 show an increase to approximately 1.88 billion, the highest recorded level.

Cash Ratio

The cash ratio, reflecting liquidity by comparing cash assets to current liabilities, has shown considerable variability. It started at 0.32 in early 2019, dipping to 0.27 in 2020 before more than doubling to 0.65 in 2021 amidst a surge in cash assets. The ratio decreased again to 0.48 in 2022, then dropped significantly to 0.22 in 2023, indicating a lower liquidity cushion relative to short-term obligations. By early 2024, the cash ratio improved markedly to 0.67, the highest level during the period, signaling a strong liquidity position relative to current liabilities.

Overall, the data suggest that despite fluctuations in cash assets and current liabilities, the company has managed periods of both increased liquidity and tighter cash positions. The most recent figures indicate an improved liquidity position, with cash assets and cash ratio reaching peak levels while current liabilities remain elevated. This may reflect strategic cash management or timing of liabilities and assets to maintain financial flexibility.