Edgewell Personal Care Co (EPC)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 962,400 | 942,200 | 1,135,700 | 983,600 | 1,044,400 |
| Total current liabilities | US$ in thousands | 523,400 | 539,500 | 536,800 | 510,500 | 659,600 |
| Current ratio | 1.84 | 1.75 | 2.12 | 1.93 | 1.58 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $962,400K ÷ $523,400K
= 1.84
The current ratio is a measure of a company's ability to meet its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger liquidity position, while a lower ratio may indicate potential difficulty in meeting short-term obligations.
Looking at the trend in Edgewell Personal Care Co's current ratio over the last five years, we observe some fluctuations.
In 2019, the company had a current ratio of 1.58, indicating that it had $1.58 in current assets for every $1 in current liabilities. This suggests some vulnerability in meeting its short-term obligations.
In 2020, the current ratio improved to 1.93, indicating a better ability to cover short-term obligations with its current assets.
The trend continued in 2021 with a current ratio of 2.12, demonstrating a further improvement in liquidity and the company's ability to meet short-term liabilities.
However, in 2022, the current ratio decreased slightly to 1.72, signaling a potential decrease in liquidity and the ability to cover short-term obligations.
The most recent data for 2023 shows an increase in the current ratio to 1.84. While this is an improvement from the previous year, it is still below the 2021 level, indicating that the company's liquidity position has not fully recovered to its peak.
In general, the current ratio has shown some volatility over the years, suggesting fluctuations in the company's ability to manage its short-term financial obligations. It will be important to monitor this ratio in the future to assess the company's ongoing liquidity and short-term solvency.
Peer comparison
Sep 30, 2023