Griffon Corporation (GFF)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 114,438 | 102,889 | 120,184 | 248,653 | 218,089 |
| Short-term investments | US$ in thousands | — | — | 62 | 16,044 | 1,703 |
| Total current liabilities | US$ in thousands | 348,990 | 359,149 | 423,579 | 531,636 | 441,822 |
| Cash ratio | 0.33 | 0.29 | 0.28 | 0.50 | 0.50 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($114,438K
+ $—K)
÷ $348,990K
= 0.33
The cash ratio of Griffon Corporation has been fluctuating over the past five years. In 2024, the cash ratio stood at 0.33, indicating that the company had $0.33 of cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous year, where the cash ratio was 0.29.
However, when compared to the cash ratios of 2022, 2021, and 2020, which were 0.28, 0.50, and 0.50 respectively, the company's liquidity position in 2024 seems weaker. A cash ratio of 0.33 suggests that Griffon Corporation may have less liquid assets available to cover its short-term obligations compared to previous years.
It is important for the company to closely monitor its cash position and liquidity management to ensure it can meet its financial obligations in a timely manner. Further analysis of the company's cash flow dynamics and working capital management may provide additional insights into its liquidity position.