Central Garden & Pet Company (CENT)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 753,550 | 488,730 | 177,442 | 426,422 | 652,712 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 326,220 | 332,890 | 376,787 | 385,384 | 391,773 |
| Total current liabilities | US$ in thousands | 515,384 | 457,987 | 465,892 | 522,319 | 440,262 |
| Quick ratio | 2.10 | 1.79 | 1.19 | 1.55 | 2.37 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($753,550K
+ $—K
+ $326,220K)
÷ $515,384K
= 2.10
The quick ratio of Central Garden & Pet Company has shown fluctuations over the past five years. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets.
In 2024, the quick ratio improved to 2.10 compared to the previous year's ratio of 1.79. This suggests that the company was in a better position to cover its short-term liabilities with its quick assets.
In 2023, the quick ratio was 1.79, indicating a slight decline from the previous year and potentially raising concerns about the company's short-term liquidity position.
The quick ratio was at its lowest level of 1.19 in 2022, which might indicate some temporary challenges in meeting short-term obligations with readily available assets.
In 2021, the quick ratio improved to 1.55 from the previous year, showing a better ability to cover short-term liabilities with quick assets.
The highest quick ratio of 2.37 was observed in 2020, indicating a strong liquidity position and the ability to easily cover short-term obligations with quick assets.
Overall, the trend in the quick ratio fluctuated over the period, indicating varying levels of liquidity and ability to meet short-term obligations. It is important for Central Garden & Pet Company to carefully manage its liquidity to ensure a healthy financial position.
Peer comparison
Sep 30, 2024