H&R Block Inc (HRB)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,239,480 | 1,187,490 | 1,384,460 | 1,699,720 | 3,086,740 |
| Total current liabilities | US$ in thousands | 977,328 | 938,782 | 998,813 | 1,163,080 | 1,575,620 |
| Current ratio | 1.27 | 1.26 | 1.39 | 1.46 | 1.96 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,239,480K ÷ $977,328K
= 1.27
The current ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets. A current ratio of 1.27 as of June 30, 2024, indicates that H&R Block Inc had $1.27 in current assets for every $1 of current liabilities.
Comparing the current ratio over the five-year period, we observe a declining trend from 1.96 in April 30, 2020, to 1.27 in June 30, 2024. This downward trend suggests potential issues in the company's ability to cover its short-term obligations efficiently over time.
While a current ratio above 1 indicates the company has sufficient current assets to cover its current liabilities, the decreasing trend could be a cause for concern. It may imply that H&R Block Inc's liquidity position has weakened over the years, potentially signaling challenges in managing its short-term financial obligations.
Further analysis and monitoring of the company's liquidity position, along with an evaluation of the composition and quality of current assets, would be necessary to gain a more comprehensive understanding of H&R Block Inc's financial health.
Peer comparison
Jun 30, 2024