Central Garden & Pet Company (CENT)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 753,550 | 488,730 | 177,442 | 426,422 | 652,712 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 515,384 | 457,987 | 465,892 | 522,319 | 440,262 |
| Cash ratio | 1.46 | 1.07 | 0.38 | 0.82 | 1.48 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($753,550K
+ $—K)
÷ $515,384K
= 1.46
The cash ratio of Central Garden & Pet Company has fluctuated over the past five years. In 2024, the cash ratio stands at 1.46, indicating that the company has $1.46 in cash and cash equivalents for every $1 of current liabilities. This represents a significant improvement compared to 2023 when the ratio was 1.07.
The cash ratio was lowest in 2022 at 0.38, suggesting that the company had only $0.38 in cash and cash equivalents for every $1 of current liabilities, indicating potential liquidity challenges during that period. The ratio improved in 2023 and 2024, signaling a better ability to meet short-term obligations with available cash resources.
Compared to the previous years, the cash ratio was relatively high in 2020 at 1.48, indicating a strong liquidity position. Overall, the upward trend in the cash ratio from 2022 to 2024 reflects an improvement in Central Garden & Pet Company's ability to cover its short-term liabilities with cash on hand.
Peer comparison
Sep 30, 2024