Freshpet Inc (FRPT)

Current ratio

Mar 31, 2025 Dec 31, 2024 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
Total current assets US$ in thousands 405,392 436,998 421,294 405,220 406,958 427,319 462,390 487,140 513,144 261,965 383,479 454,721 142,965 150,325 237,790 344,617 396,042 109,096 137,482 172,621
Total current liabilities US$ in thousands 82,574 98,869 89,242 90,000 81,946 89,222 83,773 77,442 55,739 89,614 130,972 70,839 96,444 58,946 28,743 57,202 45,823 33,121 23,970 19,412
Current ratio 4.91 4.42 4.72 4.50 4.97 4.79 5.52 6.29 9.21 2.92 2.93 6.42 1.48 2.55 8.27 6.02 8.64 3.29 5.74 8.89

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $405,392K ÷ $82,574K
= 4.91

The analysis of Freshpet Inc.'s current ratio over the period from June 2020 to March 2025 reveals significant fluctuations in liquidity positioning. Early in the period, the current ratio was notably high, with a peak of 8.89 as of June 30, 2020, indicating a robust ability to meet short-term obligations with current assets exceeding current liabilities by a substantial margin. Subsequent quarters experienced a decline, most notably reaching low points such as 1.48 on March 31, 2022, suggesting periods of reduced liquidity where the company's current assets were just over one and a half times its current liabilities.

Following this low, the current ratio demonstrated a recovery, with values rising to levels above 6.00 by June 30, 2021, and peaking again at 9.21 in March 2023. These peaks suggest periods of enhanced liquidity, potentially reflecting improved working capital management or increased current asset holdings. However, the ratio experienced periodic declines afterward, with the most recent data points maintaining a relatively stable range around 4.50 to 4.97 as of the end of the analyzed period in March 2025.

Overall, the current ratio of Freshpet Inc. has exhibited considerable volatility, oscillating between highly conservative levels (above 8.00) and more moderate figures (around 2.50 to 4.50). The higher ratios in the earlier period indicate a conservative liquidity approach or excess current assets, while the lows point to periods of tighter liquidity management or increased short-term liabilities. The recent stabilization around approximately 4.50 suggests an improved and more consistent liquidity position, though the ratio remains below the initial peaks, reflecting a trend toward a more balanced but still potentially cautious liquidity stance.