Leslies Inc (LESL)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 422,434 | 420,286 | 542,378 | 601,711 |
| Total current liabilities | US$ in thousands | 246,919 | 225,830 | 347,956 | 309,713 |
| Current ratio | 1.71 | 1.86 | 1.56 | 1.94 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $422,434K ÷ $246,919K
= 1.71
The current ratio of Leslies Inc has exhibited fluctuations over the past four years. The ratio decreased from 1.94 in 2021 to 1.56 in 2022, signaling potential liquidity challenges in the short term. However, there was a notable improvement in 2023 as the current ratio increased to 1.86 but then decreased again to 1.71 in 2024.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable. Despite the fluctuations, Leslies Inc has managed to maintain a current ratio above 1 in all years, indicating its ability to cover short-term obligations.
It is essential for the company to closely monitor its current assets and liabilities management to ensure sustainable liquidity in the future. Additionally, further analysis of the composition of current assets and liabilities would provide more insights into the company's liquidity position.
Peer comparison
Sep 30, 2024