The CatoCATO +3.73%65 Quick Ratio is 0.74 as of Apr. 2026, which is 36% below its 10-year median of 1.16. GuruFocus rates CATO with a GF Score™ of 65/100 and a GF Value™ of $4.19 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,132 Retail - Cyclical companies, The Cato ranks worse than 56.36% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. The Cato's quick ratio for the quarter that ended in Apr. 2026 was 0.74.
The Cato has a quick ratio of 0.74. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for The Cato's Quick Ratio or its related term are showing as below:
CATO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.6 Med: 1.16 Max: 2.25
Current: 0.74
During the past 13 years, The Cato's highest Quick Ratio was 2.25. The lowest was 0.60. And the median was 1.16.
CATO's Quick Ratio is ranked worse than 56.36% of 1132
companies
in the Retail - Cyclical industry
Industry Median: 0.87
vs CATO: 0.74
The Cato (NYSE:CATO) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
The Cato Quick Ratio Related Terms
The Cato Quick Ratio Historical Data
* Premium members only.
The historical data trend for The Cato's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Retail subindustry, The Cato's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Cato Quick Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Quick Ratio distribution charts can be found below:
* The bar in red indicates where The Cato's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
The Cato's Quick Ratio for the fiscal year that ended in Jan. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Cato (CATO) has a Quick Ratio of 0.74 as of Apr. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on The Cato and its competitors. This is 36% below median its historical median of 1.16. Over the past decade, The Cato's Quick Ratio has ranged from 0.60 to 2.25. According to the industry distribution chart, The Cato ranks #638 out of 1132 companies in the Retail - Cyclical industry, placing it in the top 56.4%.
Is The Cato's Quick Ratio too high?
The Cato's current Quick Ratio of 0.74 is 36% below median its 10-year median of 1.16. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 2.25. The Retail - Cyclical industry median Quick Ratio is 0.87. The Cato's value of 0.74 is 14.9% below this industry median. Based on the distribution chart, The Cato ranks #638 out of 1132 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, The Cato has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's Quick Ratio compare to DXLG and BRIA?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #638 out of 1132 companies for Quick Ratio. This places The Cato in the lower half of its industry. The industry median Quick Ratio is 0.87. The Cato's value of 0.74 is 14.9% below this benchmark. Historically, The Cato's own Quick Ratio has ranged from 0.60 to 2.25 over the past decade. While the company's 10-year median is 1.16 vs. the industry median of 0.87, The Cato has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Retail - Cyclical company?
The median Quick Ratio among Retail - Cyclical companies is 0.87, based on 1,132 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cato's current Quick Ratio of 0.74 is 14.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median Quick Ratio is 0.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current Quick Ratio is 0.74, which is 36% below median its own 10-year median of 1.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Cato stock overvalued right now?
Based on GuruFocus' analysis, The Cato (CATO) is currently considered Modestly Undervalued. The stock's GF Value™ is $4.19, compared to a current price of $3.34 — trading 20.3% below its estimated fair value. The current Quick Ratio is 0.74, which is 36% below median its 10-year median of 1.16 and 14.9% below the Retail - Cyclical industry median of 0.87. The Cato's overall GF Score™ is 65/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For The Cato (CATO), the current Quick Ratio is 0.74 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Cato (CATO) Overvalued in 2026?
Based on GuruFocus' analysis, The Cato stock appears to be undervalued.
The current stock price of $3.34 is trading 20.3% below its estimated GF Value™ of $4.19.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
Quick Ratio: 0.74 (36% below median its 10-year median of 1.16)
GF Value™: $4.19 vs. price of $3.34 (20.3% below fair value)
Industry Position: 14.9% below the Retail - Cyclical median (#638 of 1132)
No single metric tells the full story. See the CATO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Cato Corp seeks to offer quality fashion apparel and accessories at low prices every day, in junior/missy and plus sizes. The Cato concept's stores and e-commerce website feature a broad assortment of apparel and accessories, including dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, and handbags. Management believes the Company's success is dependent upon its ability to differentiate its stores from department stores, mass merchandise discount stores, and competing specialty stores. The key elements of the Company's business are: Merchandise Assortment, Value Pricing, Strip Shopping Center Location, Customer Service, Credit and Layaway Programs.
65GF Score
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