H&R Block Inc (HRB)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,053,330 | 986,975 | 885,015 | 934,251 | 2,661,910 |
| Short-term investments | US$ in thousands | — | — | — | — | 11,200 |
| Total current liabilities | US$ in thousands | 977,328 | 938,782 | 998,813 | 1,163,080 | 1,575,620 |
| Cash ratio | 1.08 | 1.05 | 0.89 | 0.80 | 1.70 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,053,330K
+ $—K)
÷ $977,328K
= 1.08
The cash ratio of H&R Block Inc has shown fluctuations over the years, ranging from 0.80 to 1.70. A higher cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
H&R Block's cash ratio has generally been above 1.0 in recent years, suggesting a healthy liquidity position. The ratio peaked at 1.70 in April 2020, indicating a substantial increase in available cash compared to short-term liabilities. However, there was a slight decrease in the cash ratio in the following years, with the ratio dropping to 0.89 in June 2022.
Overall, the cash ratio of H&R Block Inc has demonstrated the company's ability to meet its short-term obligations using its cash reserves. The fluctuations in the ratio should be further analyzed in conjunction with other financial metrics to assess the company's overall financial health and liquidity position.
Peer comparison
Jun 30, 2024