Central Garden & Pet Company A (CENTA)
Cash 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 and cash equivalents | 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 | 1,838,480 | 0 |
| 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 |
| Cash ratio | 1.46 | 1.09 | 0.54 | 0.69 | 1.07 | 0.67 | 0.13 | 0.21 | 0.38 | 0.38 | 0.09 | 0.58 | 0.82 | 1.01 | 0.07 | 1.38 | 1.48 | 1.29 | 6.08 | 1.30 |
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 fluctuated over the past several quarters. The cash ratio measures the company's ability to cover its short-term liabilities solely with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using readily available cash.
Looking at the data provided, we can see that the cash ratio has varied significantly. In the most recent quarter, Sep 30, 2024, the cash ratio was relatively high at 1.46, indicating the company had a strong cash position compared to its short-term liabilities. This is a positive sign as it suggests the company has a sufficient cash buffer to meet its immediate financial obligations.
On the other hand, there have been quarters, such as Mar 31, 2020, and Dec 31, 2019, where the cash ratio was notably high (6.08 and 1.30, respectively). A very high cash ratio can sometimes reflect an inefficient deployment of cash, as excess cash may not be generating sufficient returns for the company.
Conversely, there have been quarters where the cash ratio was relatively low, such as Mar 31, 2021, and Mar 31, 2020, which were 0.07 and 0.09, respectively. A low cash ratio may indicate potential liquidity issues, where the company may struggle to cover its short-term liabilities with its available cash.
Overall, it is essential to monitor Central Garden & Pet Company A's cash ratio over time to ensure the company maintains a healthy balance between cash liquidity and efficient use of funds.
Peer comparison
Sep 30, 2024