Helen of Troy Ltd (HELE)

Helen of Troy Ltd's liquidity ratios have shown various trends over the years. Starting with the current ratio, which measures the company's ability to cover short-term liabilities with its current assets, there has been a consistent improvement from 1.58 in February 2021 to 2.00 in February 2025. This indicates that the company's liquidity position has strengthened over the years.

On the other hand, the quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, has shown a slight fluctuation, decreasing from 0.07 in February 2021 to 0.04 in February 2025. This trend suggests that Helen of Troy Ltd may have become less capable of meeting its short-term obligations without relying on inventory.

Finally, the cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, has also followed a similar pattern to the quick ratio, decreasing from 0.07 in February 2021 to 0.04 in February 2025. This decrease indicates a potential reduction in the company's ability to settle short-term obligations using only its cash reserves.

In sum, Helen of Troy Ltd's current ratio has improved over the years, signaling a stronger liquidity position, but the quick ratio and cash ratio have shown a decline, hinting at potential challenges in meeting immediate payment obligations without relying on inventory or cash, respectively.

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Additional liquidity measure

Helen of Troy Ltd's cash conversion cycle experienced fluctuation over the past five years. As of February 28, 2021, the company's cash conversion cycle was 150.05 days, which then increased to 160.35 days by February 28, 2022. However, the trend reversed in the following years with the cycle decreasing to 141.69 days on February 28, 2023, and further dropping to 136.82 days by February 29, 2024.

Nonetheless, the cycle saw a significant increase to 166.33 days as of February 28, 2025. This suggests that Helen of Troy Ltd may have experienced challenges in managing its working capital efficiency during this period, leading to a longer cash conversion cycle. It is important for the company to focus on optimizing its accounts receivable, inventory management, and accounts payable processes to shorten its cash conversion cycle and improve overall liquidity and efficiency in its operations.