Helen of Troy Ltd (HELE)
Current ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 843,918 | 892,041 | 1,082,080 | 971,937 | 682,836 |
| Total current liabilities | US$ in thousands | 450,811 | 412,158 | 602,690 | 614,892 | 338,896 |
| Current ratio | 1.87 | 2.16 | 1.80 | 1.58 | 2.01 |
February 29, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $843,918K ÷ $450,811K
= 1.87
The current ratio for Helen of Troy Ltd has fluctuated over the past five years, indicating changes in the company's short-term liquidity position. The ratio has ranged from a low of 1.58 in February 2021 to a high of 2.16 in February 2023.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of liquidity. However, a current ratio that is too high may suggest that the company is not efficiently utilizing its current assets.
Helen of Troy's current ratio has generally been above 1.5, which is a reasonable benchmark for most industries. The current ratio of 1.87 as of February 29, 2024, indicates that the company has $1.87 in current assets to cover each dollar of current liabilities. This suggests that the company is in a healthy liquidity position, although it has decreased from the previous year's ratio of 2.16.
Overall, the company's current ratio trend should be monitored to ensure that it remains at a level that indicates a strong ability to meet its short-term obligations.