Acuity Brands Inc (AYI)
Cash ratio
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 845,800 | 699,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 687,900 | 605,300 | 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 |
| Cash ratio | 1.23 | 1.15 | 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 |
August 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($845,800K
+ $—K)
÷ $687,900K
= 1.23
The cash ratio of Acuity Brands Inc has shown fluctuations over the past few years, indicating changes in the company's liquidity position. The cash ratio measures the firm's ability to cover its short-term liabilities with its available cash and cash equivalents.
From the data provided, we observe that the cash ratio ranged from as low as 0.30 to as high as 1.23. A higher cash ratio indicates a stronger ability to cover short-term obligations using readily available cash.
Between Nov 2019 and May 2020, the cash ratio increased steadily from 0.47 to 0.91, suggesting improved liquidity during this period. However, there was a decline in the ratio in the subsequent quarters until Feb 2021, where it reached 0.64.
A significant increase in the cash ratio occurred between Feb 2021 and Aug 2021, reaching 0.71, followed by a further increase to 0.88 by Nov 2021. Subsequently, the ratio fluctuated between 0.58 and 1.15 until Aug 2024, indicating some variability in the company's cash position relative to its short-term obligations.
Overall, analyzing the cash ratio trend can provide insights into the company's liquidity management practices and its ability to meet short-term financial commitments with cash reserves.
Peer comparison
Aug 31, 2024