Acuity Brands Inc (AYI)
Cash ratio
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 578,900 | 513,300 | 397,900 | 359,300 | 339,000 | 284,100 | 223,200 | 318,200 | 475,500 | 504,000 | 491,300 | 593,500 | 498,700 | 507,000 | 560,700 | 520,600 | 380,600 | 266,600 | 461,000 | 333,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 597,900 | 600,600 | 595,400 | 624,200 | 596,300 | 697,600 | 733,600 | 866,900 | 743,700 | 695,200 | 692,200 | 671,400 | 576,300 | 583,400 | 617,600 | 575,900 | 572,200 | 572,600 | 596,100 | 631,000 |
| Cash ratio | 0.97 | 0.85 | 0.67 | 0.58 | 0.57 | 0.41 | 0.30 | 0.37 | 0.64 | 0.72 | 0.71 | 0.88 | 0.87 | 0.87 | 0.91 | 0.90 | 0.67 | 0.47 | 0.77 | 0.53 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($578,900K
+ $—K)
÷ $597,900K
= 0.97
The cash ratio of Acuity Brands Inc has shown some fluctuations over the past several quarters, ranging from a low of 0.30 to a high of 0.97. The cash ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents.
It is noted that the cash ratio has generally been above 0.50, indicating that Acuity Brands Inc has a strong ability to cover its short-term obligations solely with its cash reserves. A higher cash ratio suggests a stronger liquidity position, providing a buffer against unforeseen expenses or economic downturns.
The cash ratio peaked at 0.97 in February 29, 2024, indicating the company had almost $0.97 in cash and cash equivalents for every dollar of short-term liabilities. This demonstrates a robust liquidity position at that point in time.
On the other hand, the lowest cash ratio of 0.30 was recorded on August 31, 2022, suggesting a relatively weaker liquidity position at that specific quarter. It may be worth investigating the factors contributing to the significant decrease in the cash ratio during that period.
Overall, Acuity Brands Inc's cash ratio trend indicates that the company has maintained a healthy level of liquidity, with fluctuations possibly influenced by various factors impacting the company's cash position and short-term obligations.
Peer comparison
Feb 29, 2024