Helen of Troy Ltd (HELE)
Cash ratio
| 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 24,467 | 19,637 | 17,031 | 18,375 |
| Short-term investments | US$ in thousands | — | — | 3,582 | 2,527 | 3,941 | 2,660 | 1,275 | 63 | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 338,896 | 317,899 | 317,857 | 289,058 |
| Cash ratio | 0.04 | 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 | 0.07 | 0.06 | 0.05 | 0.06 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($18,501K
+ $—K)
÷ $450,811K
= 0.04
The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, for Helen of Troy Ltd has fluctuated over the past several reporting periods.
The cash ratio ranged from 0.04 to 0.09 between February 2024 and May 2023, indicating that the company had relatively low liquidity during this period. However, the ratio increased to 0.26 in February 2021 and 0.30 in November 2020, showing a significant improvement in liquidity.
In general, the company maintained a cash ratio above 0.05, suggesting that it had enough cash on hand to cover its short-term obligations during most reporting periods. However, the lower ratios in some periods may indicate that the company faced challenges in managing its cash resources efficiently.
Overall, it would be important to further investigate the reasons behind the fluctuations in the cash ratio to assess the company's liquidity management and financial health.