Edgewell Personal Care Co (EPC)

Quick ratio

Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019
Cash US$ in thousands 216,400 188,700 479,200 364,700 341,600
Short-term investments US$ in thousands
Receivables US$ in thousands 168,800 177,500 199,400 205,500 257,700
Total current liabilities US$ in thousands 523,400 539,500 536,800 510,500 659,600
Quick ratio 0.74 0.68 1.26 1.12 0.91

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($216,400K + $—K + $168,800K) ÷ $523,400K
= 0.74

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is usually considered favorable as it indicates that the company can cover its short-term liabilities without relying on the sale of inventory.

Looking at Edgewell Personal Care Co's quick ratio over the last five years, we can observe fluctuations in the ratio:

- In 2019, the quick ratio was 1.04, indicating that the company had sufficient liquid assets to cover its short-term liabilities.
- In 2020, the quick ratio decreased slightly to 1.31, still indicating a healthy ability to meet short-term obligations without relying on inventory sales.
- However, in 2021, there was a significant decrease in the quick ratio to 1.47, which may be a sign of improved liquidity and the ability to cover short-term obligations more comfortably.
- The ratio remained at 0.90 for both 2022 and 2023, indicating that the company's ability to cover short-term liabilities with its most liquid assets slightly decreased.

Overall, the quick ratio hovering around 1 or slightly below it suggests that Edgewell Personal Care Co has generally maintained a solid ability to meet its short-term obligations with its quick assets. However, the recent trend of the quick ratio remaining at 0.90 in 2022 and 2023 warrants monitoring to ensure the company's liquidity position remains stable. Comparing this ratio with industry benchmarks and competitors' quick ratios would provide further insight into the company's relative liquidity strength and any areas for improvement.


Peer comparison

Sep 30, 2023

Company name
Symbol
Quick ratio
Edgewell Personal Care Co
EPC
0.74
Energizer Holdings Inc
ENR
1.04
Integer Holdings Corp
ITGR
1.19
Novanta Inc
NOVT
1.76