Central Garden & Pet Company A (CENTA)
Quick 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 | 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 |
| Receivables | US$ in thousands | 370,996 | 332,890 | 492,850 | 564,874 | 329,129 | 376,787 | 505,896 | 619,629 | 343,659 | 385,384 | 494,432 | 636,466 | 322,806 | 391,773 | 503,288 | 460,985 | 268,229 | 300,135 | 395,581 | 456,129 |
| 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 |
| Quick ratio | 1.44 | 1.79 | 1.66 | 1.31 | 0.99 | 1.19 | 1.36 | 1.18 | 1.25 | 1.55 | 1.98 | 1.26 | 2.11 | 2.37 | 2.59 | 7.37 | 2.08 | 2.86 | 3.02 | 8.27 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($341,419K
+ $—K
+ $370,996K)
÷ $494,171K
= 1.44
The quick ratio of Central Garden & Pet Company A has shown fluctuations over the past five years, ranging from a low of 0.99 to a high of 8.27. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, such as cash and accounts receivable, excluding inventory.
In general, a quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities. Throughout the periods analyzed, the quick ratio has mostly been above 1, suggesting that Central Garden & Pet Company A has had sufficient liquid assets to meet its short-term obligations.
The quick ratio reached its peak of 8.27 on March 31, 2020, reflecting exceptionally high liquidity. This could be attributed to a significant influx of cash or a decrease in short-term liabilities during that period. Conversely, the lowest quick ratio of 0.99 on December 31, 2022, indicates a potential liquidity concern, as the company may have had difficulty meeting its short-term obligations with its readily available assets.
Overall, the quick ratio trend for Central Garden & Pet Company A indicates fluctuations in liquidity levels over time, which can be influenced by various factors such as operational performance, management of working capital, and economic conditions. Investors and stakeholders should continue to monitor the company's liquidity position to assess its ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023