Quick Ratio

The quick ratio measures a company’s ability to pay short-term liabilities with its most liquid assets, excluding inventory.

Capri Holdings’ current ratio of 0.39x means it has only $0.39 in liquid assets for every $1 of short-term debt, indicating a thin liquidity cushion. This is well below the sector median of 0.75x, placing the company in the 23rd percentile among Consumer Cyclical peers. Over the last eight quarters the trend has been increasing, but the most recent quarter-over-quarter change of -15.2% shows a sharp reversal, and the year-over-year change is not available. The combination of a very low absolute level and a recent quarterly decline suggests elevated short-term liquidity risk, as the company has less room to absorb unexpected cash needs. This metric supports the overall CAUTIOUS verdict, reinforcing concerns about financial flexibility in a cyclical sector.

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