Helen of Troy Ltd (HELE)

Liquidity ratios

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
Current ratio 1.87 1.76 1.88 1.94 2.16 2.15 2.12 1.95 1.80 1.86 1.82 1.85 1.58 1.82 1.90 2.07 2.01 2.29 2.24 2.20
Quick ratio 0.92 0.90 0.88 0.89 1.00 1.06 0.94 0.87 0.81 0.88 0.77 0.78 0.70 1.10 1.10 1.15 1.10 1.21 1.03 0.97
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

Helen of Troy Ltd's liquidity ratios have shown some fluctuations over the various reporting periods. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has generally been above 1, indicating a healthy liquidity position. It peaked at 2.29 in the third quarter of 2019 but has generally remained above 1.5 in recent periods.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has exhibited more variability. It dipped to 0.70 in the first quarter of 2021, indicating a lower ability to cover immediate liabilities with its most liquid assets. However, it has generally improved since then, reaching 1.21 in the third quarter of 2019.

The cash ratio, which is the most conservative liquidity metric as it only considers cash and cash equivalents, has also fluctuated over the periods. It hit a peak of 0.30 in the second quarter of 2020, suggesting a high proportion of liquid assets to cover short-term obligations.

Overall, Helen of Troy Ltd's liquidity ratios indicate a generally healthy liquidity position, with the current ratio consistently above 1 and the quick ratio showing improvement in recent periods. The company has demonstrated an ability to meet its short-term obligations with its available liquid assets.

Additional liquidity measure

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 conversion cycle days 104.98 114.35 108.09 105.43 119.27 142.44 143.18 133.84 122.00 139.89 124.13 109.01 96.12 111.87 99.30 95.39 107.97 145.18 140.55 128.78

The cash conversion cycle of Helen of Troy Ltd has shown some fluctuations over the past few periods. The cycle ranged from 95.39 days to 145.18 days, with an average cycle of around 120 days. A shorter cash conversion cycle indicates more efficient management of working capital.

During some periods, the company was able to shorten its cash conversion cycle, which could imply improved efficiency in converting inventory into sales and eventually into cash. Conversely, during other periods, the cycle was extended, potentially signaling delays in collecting receivables or managing inventory effectively.

Overall, Helen of Troy Ltd should aim to continually monitor and manage its cash conversion cycle to ensure optimal utilization of resources, timely collection of receivables, and efficient management of inventory to support its operations and financial health.