Central Garden & Pet Company A (CENTA)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 753,550 | 488,730 | 177,442 | 426,422 | 652,712 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 515,384 | 457,987 | 465,892 | 522,319 | 440,262 |
| Cash ratio | 1.46 | 1.07 | 0.38 | 0.82 | 1.48 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($753,550K
+ $—K)
÷ $515,384K
= 1.46
The cash ratio of Central Garden & Pet Company A has shown fluctuations over the past five years, ranging from 0.38 to 1.48. A higher cash ratio indicates a company's ability to cover its short-term liabilities with its available cash and cash equivalents.
The cash ratio was relatively low in 2022 at 0.38, suggesting the company may have had limited liquidity to cover its short-term obligations at that time. However, the ratio improved significantly in the following years, reaching its peak in 2020 at 1.48, indicating a stronger ability to meet short-term liabilities with cash on hand.
In 2023, the cash ratio was 1.07, showing a slight decrease compared to the previous year. Subsequently, in 2024, the ratio increased to 1.46, indicating an improvement in the company's liquidity position compared to the prior year.
Overall, while the cash ratio has shown variability over the years, the recent upward trend suggests that Central Garden & Pet Company A has been enhancing its ability to cover short-term obligations with available cash resources. However, it is essential to monitor this ratio consistently to ensure the company maintains a healthy liquidity position.
Peer comparison
Sep 30, 2024