Edgewell Personal Care Co (EPC)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 209,100 | 216,400 | 188,700 | 479,200 | 364,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 164,100 | 168,800 | 177,500 | 199,400 | 205,500 |
| Total current liabilities | US$ in thousands | 563,600 | 523,400 | 539,500 | 536,800 | 510,500 |
| Quick ratio | 0.66 | 0.74 | 0.68 | 1.26 | 1.12 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($209,100K
+ $—K
+ $164,100K)
÷ $563,600K
= 0.66
The quick ratio of Edgewell Personal Care Co has exhibited some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2024, the quick ratio stands at 0.66, indicating that the company may have difficulty meeting its short-term liabilities using its liquid assets alone. This marks a decrease from the previous year's ratio of 0.74.
Compared to 2022 and 2023 when the quick ratio was 0.68 and 0.74 respectively, the company's liquidity position appears to have deteriorated in 2024.
On the other hand, in 2021, the quick ratio was notably higher at 1.26, suggesting that Edgewell Personal Care Co had a stronger ability to cover its short-term obligations with its liquid assets. This was an improvement from the quick ratio of 1.12 in 2020.
Overall, the downward trend in the quick ratio from 2021 to 2024 raises some concerns about the company's liquidity position and its ability to meet short-term obligations. Further analysis of the company's current assets and current liabilities would provide more insights into its liquidity management.
Peer comparison
Sep 30, 2024