Helen of Troy Ltd (HELE)
Quick ratio
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 18,867 | 18,501 | 29,073 | 33,381 | 45,120 |
| Short-term investments | US$ in thousands | — | 2,500 | 3,941 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 466,259 | 450,811 | 412,158 | 602,690 | 614,892 |
| Quick ratio | 0.04 | 0.05 | 0.08 | 0.06 | 0.07 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($18,867K
+ $—K
+ $—K)
÷ $466,259K
= 0.04
The quick ratio of Helen of Troy Ltd has shown fluctuations over the years based on the provided data. The quick ratio, which measures the company's ability to cover its short-term liabilities with its most liquid assets, was 0.07 as of February 28, 2021, indicating the company had $0.07 of liquid assets for every $1 of current liabilities.
Subsequently, the quick ratio decreased to 0.06 by February 28, 2022, suggesting a slight decrease in the company's liquidity position. However, there was an improvement in the quick ratio to 0.08 by February 28, 2023, indicating the company had a better ability to meet its short-term obligations using liquid assets.
The quick ratio then decreased to 0.05 by February 29, 2024, which may raise concerns about the company's ability to cover its short-term liabilities. Furthermore, there was a further decrease in the quick ratio to 0.04 by February 28, 2025, signifying a potential liquidity challenge for Helen of Troy Ltd.
Overall, the trend in Helen of Troy Ltd's quick ratio suggests fluctuations in its liquidity position over the years, with periods of improvement and decline. It is essential for stakeholders to closely monitor this ratio to assess the company's ability to meet its short-term financial obligations.