Leslies Inc (LESL)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 420,286 | 542,378 | 601,711 |
| Total current liabilities | US$ in thousands | 225,830 | 347,956 | 309,713 |
| Current ratio | 1.86 | 1.56 | 1.94 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $420,286K ÷ $225,830K
= 1.86
The current ratio of Leslies Inc has shown fluctuations over the past three years. In 2021, the current ratio was at its highest level of 1.94, indicating that the company had $1.94 in current assets for every $1 in current liabilities. This suggests a relatively strong liquidity position at that time.
However, in 2022, the current ratio declined to 1.56, signaling a decrease in the company's ability to cover its short-term obligations with its current assets. This may have raised concerns about the company's liquidity and ability to meet its financial obligations in the short term.
In 2023, the current ratio improved to 1.86, although it still remained below the 2021 level. This indicates a partial recovery in the company's liquidity position, but it is important to continue monitoring the trend to ensure sustained improvement in the ability to meet short-term liabilities with current assets.
Overall, the fluctuation in Leslies Inc's current ratio over the past three years suggests varying levels of liquidity and the need for the company to manage its current assets and liabilities effectively to maintain a healthy financial position.
Peer comparison
Sep 30, 2023