Central Garden & Pet Company A (CENTA)
Cash 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 and cash equivalents | 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 | 1,838,480 | 0 | 0 | 119 | 1,688,160 |
| 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 |
| Cash ratio | 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 | 1.79 | 1.60 | 6.75 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($341,419K
+ $—K)
÷ $494,171K
= 0.69
The cash ratio of Central Garden & Pet Company A has fluctuated over the periods provided in the table. A cash ratio below 1 indicates that the company may not have enough liquid assets to cover its short-term liabilities. The trend in the cash ratio shows variability, with some periods having ratios significantly below 1, suggesting potential liquidity challenges.
The cash ratio was relatively stable around 0.3 to 0.6 until the end of 2022, when it dropped to 0.09, indicating a significant decrease in the company's ability to cover its short-term liabilities with cash and cash equivalents. Subsequently, there was an improvement in the cash ratio in the first quarter of 2023 to 0.13, although still below 1.
The cash ratio then increased to 0.67 in the second quarter of 2023 and further to 1.07 in the third quarter of 2023, indicating a positive trend towards a healthier liquidity position. The cash ratio exceeding 1 in the third quarter of 2023 suggests that the company had sufficient cash and cash equivalents to cover its short-term obligations. This improvement could be due to better cash management practices or an increase in liquid assets.
Overall, the company's cash ratio has shown fluctuations, indicating varying levels of liquidity over the periods analyzed. Investors and stakeholders may need to monitor this ratio closely to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023