Greif Bros Corporation (GEF)
Cash ratio
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 179,300 | 180,900 | 157,700 | 158,500 | 161,000 | 147,100 | 127,500 | 108,700 | 119,700 | 124,600 | 99,800 | 110,400 | 101,400 | 105,900 | 98,500 | 72,400 | 90,800 | 77,300 | 75,800 | 89,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 882,700 | 939,300 | 951,200 | 937,400 | 880,500 | 1,047,900 | 1,116,000 | 1,121,900 | 1,280,500 | 1,314,100 | 1,241,700 | 1,109,900 | 990,500 | 1,000,100 | 914,900 | 840,500 | 824,200 | 825,400 | 837,000 | 809,400 |
| Cash ratio | 0.20 | 0.19 | 0.17 | 0.17 | 0.18 | 0.14 | 0.11 | 0.10 | 0.09 | 0.09 | 0.08 | 0.10 | 0.10 | 0.11 | 0.11 | 0.09 | 0.11 | 0.09 | 0.09 | 0.11 |
January 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($179,300K
+ $—K)
÷ $882,700K
= 0.20
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. It is calculated by dividing cash and cash equivalents by current liabilities.
Greif Inc's cash ratio has shown a fluctuating trend over the past quarters, ranging from 0.23 to 0.43. The increasing trend in the cash ratio from Q3 2022 to Q1 2023 suggests an improvement in the company's liquidity position during that period. However, there was a slight decline in the cash ratio in Q2 2023 and Q4 2023.
The Q1 2024 cash ratio of 0.43 indicates that Greif Inc had $0.43 in cash and cash equivalents for every dollar of current liabilities, reflecting a strong liquidity position. This suggests that the company is better positioned to meet its short-term obligations using its available cash resources in the most recent quarter.
Overall, while the company has demonstrated fluctuations in its cash ratio in recent quarters, the upward trend in the most recent period indicates an improvement in Greif Inc's ability to cover its short-term liabilities with cash and cash equivalents. Monitoring this ratio over time can provide insight into the company's liquidity management and financial health.