Leslies Inc (LESL)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 108,505 | 55,420 | 112,293 | 343,498 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 246,919 | 225,830 | 347,956 | 309,713 |
| Cash ratio | 0.44 | 0.25 | 0.32 | 1.11 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($108,505K
+ $—K)
÷ $246,919K
= 0.44
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.
Leslies Inc's cash ratio has fluctuated over the past four years, with values of 0.44 in 2024, 0.25 in 2023, 0.32 in 2022, and 1.11 in 2021. The cash ratio of 0.44 in 2024 suggests that the company has $0.44 in cash and cash equivalents for every $1 of current liabilities. This indicates an improvement compared to the previous year but is still relatively low which may raise concerns about its liquidity position.
In 2023, the cash ratio was lower at 0.25, indicating that the company had less cash available to cover its short-term obligations. This may have been a result of increased liabilities relative to cash reserves during that period.
The cash ratio of 0.32 in 2022 showed a slight improvement, but it remained below 1, indicating that Leslies Inc may have had difficulty meeting its short-term obligations using only its cash resources.
The significant increase in the cash ratio to 1.11 in 2021 suggests that the company had a substantial amount of cash available relative to its short-term liabilities. This may have been due to an increase in cash reserves or a decrease in short-term liabilities compared to the previous year.
Overall, the trend in Leslies Inc's cash ratio indicates fluctuations in its liquidity position over the last four years. Investors and stakeholders should monitor this ratio alongside other liquidity metrics to assess the company's ability to meet its short-term obligations effectively.
Peer comparison
Sep 30, 2024