Helen of Troy Ltd (HELE)
Cash ratio
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 18,867 | 18,501 | 29,073 | 33,381 | 45,120 |
| Short-term investments | US$ in thousands | — | 2,500 | 3,941 | — | — |
| Total current liabilities | US$ in thousands | 466,259 | 450,811 | 412,158 | 602,690 | 614,892 |
| Cash ratio | 0.04 | 0.05 | 0.08 | 0.06 | 0.07 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($18,867K
+ $—K)
÷ $466,259K
= 0.04
The cash ratio of Helen of Troy Ltd has fluctuated over the past five years. As of February 28, 2021, the cash ratio was at 0.07, indicating that for every dollar of current liabilities, the company had $0.07 in cash. This ratio decreased slightly to 0.06 by February 28, 2022, and then increased to 0.08 by February 28, 2023, suggesting an improvement in the company's ability to cover its short-term liabilities with cash.
However, the trend reversed in the following years as the cash ratio dropped to 0.05 by February 29, 2024, and further decreased to 0.04 by February 28, 2025. This decline may raise concerns about the company's liquidity position and its ability to meet its short-term obligations solely with cash on hand.
Overall, the fluctuation in Helen of Troy Ltd's cash ratio indicates that the company's liquidity position has varied over the years, and it may be important for stakeholders to monitor this ratio closely to assess the company's ability to meet its short-term financial obligations.