Central Garden & Pet Company (CENT)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 488,730 | 177,442 | 426,422 | 652,712 | 497,749 |
| Short-term investments | US$ in thousands | — | — | — | — | 0 |
| Total current liabilities | US$ in thousands | 457,987 | 465,892 | 522,319 | 440,262 | 278,525 |
| Cash ratio | 1.07 | 0.38 | 0.82 | 1.48 | 1.79 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($488,730K
+ $—K)
÷ $457,987K
= 1.07
The cash ratio of Central Garden & Pet Co. has fluctuated over the past five years, indicating changes in the company's ability to meet its short-term obligations using its cash and cash equivalents. In September 2023, the cash ratio improved to 1.14 from 0.48 in September 2022, suggesting a strengthened ability to cover current liabilities with available cash. However, it is important to note that the cash ratio was higher in the past, with 1.90 in September 2019 and 1.55 in September 2020. This indicates that the company had a higher level of cash and cash equivalents relative to current liabilities during those periods. The trend suggests potential fluctuations in the company's liquidity position over the years. Further analysis of the company's cash management and working capital practices may provide insights into these fluctuations.
Peer comparison
Sep 30, 2023