Helen of Troy Ltd (HELE)
Current ratio
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 931,712 | 843,918 | 892,041 | 1,082,080 | 971,937 |
| Total current liabilities | US$ in thousands | 466,259 | 450,811 | 412,158 | 602,690 | 614,892 |
| Current ratio | 2.00 | 1.87 | 2.16 | 1.80 | 1.58 |
February 28, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $931,712K ÷ $466,259K
= 2.00
The current ratio of Helen of Troy Ltd has shown a generally positive trend over the past five years, indicating the company's improving liquidity position. As of February 28, 2021, the current ratio was 1.58, indicating that the company had $1.58 in current assets for every $1 in current liabilities. This ratio increased to 1.80 by February 28, 2022, and further improved to 2.16 by February 28, 2023, reflecting a strengthening liquidity position.
However, there was a slight decrease in the current ratio to 1.87 as of February 29, 2024, before rebounding to 2.00 by February 28, 2025. This fluctuation may suggest changes in the company's operating cycle or management of current assets and liabilities.
Overall, the current ratio above 1 indicates that Helen of Troy Ltd has more than enough current assets to cover its current liabilities, providing a buffer against short-term financial obligations. The increasing trend in the current ratio over the years suggests a healthy liquidity position that can potentially support the company's operational needs and financial stability.