Central Garden & Pet Company A (CENTA)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 753,550 | 488,730 | 177,442 | 426,422 | 652,712 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 326,220 | 332,890 | 376,787 | 385,384 | 391,773 |
| Total current liabilities | US$ in thousands | 515,384 | 457,987 | 465,892 | 522,319 | 440,262 |
| Quick ratio | 2.10 | 1.79 | 1.19 | 1.55 | 2.37 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($753,550K
+ $—K
+ $326,220K)
÷ $515,384K
= 2.10
The quick ratio of Central Garden & Pet Company A has been fluctuating over the past five years. In 2024, the quick ratio stands at 2.10, indicating that the company has $2.10 in liquid assets available to cover each dollar of current liabilities. This represents an improvement compared to the previous year's quick ratio of 1.79.
In 2023, the quick ratio was 1.19, reflecting a potential liquidity concern as the company had only $1.19 in liquid assets for every dollar of current liabilities. However, in 2022, the quick ratio improved to 1.55, suggesting a better ability to meet short-term obligations.
The highest quick ratio observed in the past five years was in 2020, at 2.37, indicating a strong liquidity position with $2.37 in liquid assets available for each dollar of current liabilities. Overall, the fluctuation in the quick ratio may signal varying levels of liquidity and the company's ability to meet its short-term obligations over the years.
Peer comparison
Sep 30, 2024