Current Ratio

The current ratio of 1.21x measures Capri Holdings’ ability to pay short-term liabilities with short-term assets—a value above 1.0x indicates it has more current assets than current liabilities, but the figure is below the sector median of 1.44x, placing the company in the 37th percentile among Consumer Cyclical peers, meaning many competitors have stronger liquidity.

Year-over-year change is not available, though quarter-over-quarter the ratio improved by 6.1%, rising from 1.14x to 1.21x, signaling a short-term strengthening in liquidity. The combination of a below-median level with a recent upward trend suggests a modest reduction in near-term balance sheet risk, but the absolute ratio still implies limited headroom if obligations were to tighten. This metric does not contradict the overall CAUTIOUS verdict—while the improvement is positive, the ratio’s persistent lag behind the sector median reinforces the prudence reflected in the stock rating.

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