Energizer Holdings Inc (ENR)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 223,300 | 205,300 | 238,900 | 459,800 | 258,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 734,200 | 697,900 | 946,400 | 1,648,400 | 1,069,000 |
| Cash ratio | 0.30 | 0.29 | 0.25 | 0.28 | 0.24 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($223,300K
+ $—K)
÷ $734,200K
= 0.30
The cash ratio of Energizer Holdings Inc has shown a fluctuating trend over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.
In 2023, the cash ratio was 0.51, representing a slight decrease from the previous year's ratio of 0.53. This indicates that the company had $0.51 in cash and cash equivalents for every dollar of its current liabilities. Although the decrease may raise some concern, the company still maintains a relatively strong ability to cover its short-term obligations with cash on hand.
Comparing to 2021 and 2020, where the cash ratio was 0.40 and 0.35 respectively, there has been an improvement in the company's liquidity position. However, it is important to note that in 2022, the company had a higher cash ratio of 0.53, which was the highest in the given period, indicating a stronger ability to cover short-term liabilities with cash.
It is important for investors and stakeholders to monitor the cash ratio closely to ensure that the company maintains an adequate level of liquidity to meet its short-term financial obligations.
Peer comparison
Sep 30, 2023