Helen of Troy Ltd (HELE)
Cash ratio
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 18,867 | 40,804 | 20,137 | 16,148 | 18,501 | 25,247 | 24,214 | 38,869 | 29,073 | 45,337 | 39,650 | 49,254 | 33,381 | 44,344 | 31,779 | 37,368 | 45,120 | 156,661 | 148,399 | 88,517 |
| Short-term investments | US$ in thousands | — | — | 2,500 | 2,500 | 2,500 | 2,400 | 3,582 | 2,527 | 3,941 | 2,660 | 1,275 | 63 | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 466,259 | 517,772 | 508,696 | 427,675 | 450,811 | 543,716 | 472,395 | 440,791 | 412,158 | 522,702 | 583,111 | 603,335 | 602,690 | 625,308 | 600,235 | 571,735 | 614,892 | 598,505 | 500,335 | 365,929 |
| Cash ratio | 0.04 | 0.08 | 0.04 | 0.04 | 0.05 | 0.05 | 0.06 | 0.09 | 0.08 | 0.09 | 0.07 | 0.08 | 0.06 | 0.07 | 0.05 | 0.07 | 0.07 | 0.26 | 0.30 | 0.24 |
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 exhibited fluctuating trends over the reported periods, ranging from 0.04 to 0.30. The cash ratio represents the proportion of a company's cash and cash equivalents to its current liabilities. A higher cash ratio indicates that a company is more capable of covering its short-term obligations using its existing cash resources.
Helen of Troy Ltd's cash ratio reached its peak in August 2020 at 0.30, suggesting a strong liquidity position at that time. However, the ratio has since declined, with notable drops in February 2021, May 2021, and August 2021, where it dropped to 0.07 and then further to 0.05 in August 2021. This declining trend may indicate a decrease in the company's ability to cover its short-term obligations solely with its current cash holdings during these periods.
Subsequently, the cash ratio experienced slight fluctuations between 0.05 and 0.09 over the next few periods, hinting at Helen of Troy Ltd's efforts to manage its liquidity position. The ratio stood at 0.04 in August 2024, signaling a potential liquidity challenge. However, there was an improvement in the ratio to 0.08 by November 2024, followed by a decline to 0.04 by February 2025.
Overall, the varying cash ratio values throughout the reporting periods suggest fluctuations in Helen of Troy Ltd's liquidity and ability to meet short-term liabilities using its available cash reserves. It is essential for the company to monitor and manage its cash position effectively to ensure sufficient liquidity to meet its obligations as they come due.