Central Garden & Pet Company (CENT)
Quick ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 497,749 | 445,632 | 329,724 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0 | — | 0 | 0 | 119 | — |
| Receivables | US$ in thousands | 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 | 300,135 | 395,581 | 456,129 |
| Total current liabilities | US$ in thousands | 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 | 278,525 | 278,813 | 299,128 |
| Quick ratio | 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 | 2.86 | 3.02 | 2.63 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($341,419K
+ $—K
+ $370,996K)
÷ $494,171K
= 1.44
The quick ratio of Central Garden & Pet Company has displayed fluctuations over the past several quarters. The quick ratio, which measures the company's ability to cover its short-term obligations using its most liquid assets, stood at 1.44 as of December 31, 2023. This means that for every dollar of current liabilities, Central Garden & Pet had $1.44 of quick assets available to meet those obligations.
The quick ratio has shown a generally increasing trend from March 31, 2022, to September 30, 2023, indicating an improvement in the company's liquidity position. However, the ratio saw a decrease in December 31, 2023, compared to the previous quarter. This fluctuation may suggest changes in the composition of current assets or liabilities during the period.
Overall, a quick ratio above 1 indicates that Central Garden & Pet has an adequate level of quick assets to cover its short-term liabilities. Investors and creditors use this metric to assess the company's liquidity and ability to meet its upcoming financial obligations in the short term.
Peer comparison
Dec 31, 2023