Central Garden & Pet Company (CENT)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 488,730 | 177,442 | 426,422 | 652,712 | 497,749 |
| Short-term investments | US$ in thousands | — | — | — | — | 0 |
| Receivables | US$ in thousands | 332,890 | 376,787 | 385,384 | 391,773 | 300,135 |
| Total current liabilities | US$ in thousands | 457,987 | 465,892 | 522,319 | 440,262 | 278,525 |
| Quick ratio | 1.79 | 1.19 | 1.55 | 2.37 | 2.86 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($488,730K
+ $—K
+ $332,890K)
÷ $457,987K
= 1.79
The quick ratio of Central Garden & Pet Co. has exhibited fluctuations over the past five years. In fiscal year 2023, the quick ratio stood at 1.87, indicating an improvement from the previous year's ratio of 1.29. This suggests that the company's ability to meet its short-term obligations with its most liquid assets has strengthened. However, compared to fiscal year 2021 and 2020, the quick ratio has declined, indicating a potential decrease in the company's ability to cover its current liabilities with its quick assets. The trend from fiscal year 2019 to 2023 indicates a general decrease in the quick ratio, pointing to a potential erosion in the company's short-term liquidity position. This declining trend warrants further investigation into the management of the company's current assets and liabilities to ensure sustainable liquidity management.
Peer comparison
Sep 30, 2023