Central Garden & Pet Company (CENT)
Quick ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 753,550 | 570,398 | 301,332 | 341,419 | 488,730 | 333,139 | 60,607 | 87,800 | 177,442 | 195,791 | 54,082 | 296,038 | 426,422 | 517,052 | 39,869 | 608,285 | 652,712 | 495,339 | 331,555 | 445,813 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0 | — | 0 |
| Receivables | US$ in thousands | 326,220 | 507,524 | 578,237 | 370,996 | 332,890 | 492,850 | 564,874 | 329,129 | 376,787 | 505,896 | 619,629 | 343,659 | 385,384 | 494,432 | 636,466 | 322,806 | 391,773 | 503,288 | 460,985 | 268,229 |
| Total current liabilities | US$ in thousands | 515,384 | 521,445 | 556,490 | 494,171 | 457,987 | 496,387 | 475,949 | 423,039 | 465,892 | 516,187 | 570,749 | 513,350 | 522,319 | 511,007 | 536,763 | 441,212 | 440,262 | 385,250 | 357,100 | 343,860 |
| Quick ratio | 2.10 | 2.07 | 1.58 | 1.44 | 1.79 | 1.66 | 1.31 | 0.99 | 1.19 | 1.36 | 1.18 | 1.25 | 1.55 | 1.98 | 1.26 | 2.11 | 2.37 | 2.59 | 2.22 | 2.08 |
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 shows a fluctuating trend over the past few quarters, ranging from 0.99 to 2.59. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term liabilities.
In the most recent quarter, as of September 30, 2024, the quick ratio stands at 2.10, indicating a healthy liquidity position. This implies that the company has $2.10 in quick assets for every $1 of current liabilities, suggesting a strong ability to meet its short-term obligations without relying heavily on inventory.
The quick ratio has shown an overall increasing trend from the end of 2020 to 2023, reaching a peak of 2.59 at the end of 2019, which is a positive indicator of improved liquidity and financial health. However, there was a slight dip in the quick ratio in the first half of 2022, followed by a recovery in the later quarters.
Investors and stakeholders may view the current quick ratio of 2.10 positively as it indicates that Central Garden & Pet Company is in a strong position to meet its short-term financial obligations. However, it is important to monitor the trend of the quick ratio over time to assess the company's ongoing liquidity management and financial stability.
Peer comparison
Sep 30, 2024