Central Garden & Pet Company A (CENTA)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 488,730 | 177,442 | 426,422 | 652,712 | 497,749 |
| Short-term investments | US$ in thousands | — | — | — | — | 0 |
| Total current liabilities | US$ in thousands | 457,987 | 465,892 | 522,319 | 440,262 | 278,525 |
| Cash ratio | 1.07 | 0.38 | 0.82 | 1.48 | 1.79 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($488,730K
+ $—K)
÷ $457,987K
= 1.07
The cash ratio of Central Garden & Pet Co. has fluctuated over the past five years. As of September 30, 2023, the cash ratio stood at 1.14, indicating that the company had $1.14 in cash and cash equivalents for every $1 of current liabilities. This represents a notable improvement compared to the previous year's ratio of 0.48.
The significant increase in the cash ratio may imply that the company has strengthened its liquidity position and is better equipped to meet its short-term obligations. However, it is essential to note that the cash ratio has varied over the years, with the highest ratio observed in 2019 at 1.90 and the lowest in 2022 at 0.48.
Overall, the upward trend in the cash ratio suggests an improvement in the company's ability to cover its immediate financial obligations with its readily available cash resources. Nonetheless, further analysis of its cash management and liquidity position would provide a more comprehensive understanding of Central Garden & Pet Co.'s financial health.
Peer comparison
Sep 30, 2023