Edgewell Personal Care Co (EPC)
Quick ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 209,100 | 196,100 | 196,200 | 214,200 | 216,400 | 207,400 | 155,200 | 184,100 | 188,700 | 181,600 | 188,100 | 239,800 | 479,200 | 437,500 | 282,100 | 280,800 | 364,700 | 511,900 | 308,800 | 251,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 164,100 | 216,200 | 209,300 | 177,400 | 168,800 | 190,200 | 223,200 | 163,000 | 177,500 | 201,100 | 226,300 | 201,700 | 199,400 | 191,700 | 237,300 | 210,800 | 205,500 | 217,700 | 245,400 | 218,900 |
| Total current liabilities | US$ in thousands | 563,600 | 535,100 | 541,900 | 467,700 | 523,400 | 579,800 | 569,000 | 501,300 | 539,500 | 575,100 | 544,200 | 483,900 | 536,800 | 547,100 | 483,800 | 428,900 | 510,500 | 484,400 | 486,200 | 462,500 |
| Quick ratio | 0.66 | 0.77 | 0.75 | 0.84 | 0.74 | 0.69 | 0.67 | 0.69 | 0.68 | 0.67 | 0.76 | 0.91 | 1.26 | 1.15 | 1.07 | 1.15 | 1.12 | 1.51 | 1.14 | 1.02 |
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 been fluctuating over the past several periods, indicating variations in the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its current liabilities with its most liquid assets excluding inventory.
From Dec 2019 to Mar 2020, the quick ratio decreased from 1.51 to 1.02, indicating a decline in liquidity. However, from Mar 2020 to Sep 2020, there was an increase in the quick ratio, showing improvement in the company's short-term liquidity position.
In the more recent periods, the quick ratio continued to fluctuate, ranging from 0.66 to 0.84 as of Sep 2024. A quick ratio below 1.0 may suggest that Edgewell Personal Care Co may have difficulty meeting its short-term obligations with its quick assets alone.
The downward trend in the quick ratio over the recent periods may be a cause for concern as it indicates a potential deterioration in the company's liquidity position. Further analysis and monitoring of the company's ability to cover its short-term liabilities with its available liquid assets would be advisable to assess its financial health and liquidity risk.
Peer comparison
Sep 30, 2024