Leslies Inc (LESL)
Liquidity ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.71 | 1.60 | 1.73 | 1.92 | 1.86 | 1.70 | 2.02 | 2.00 | 1.56 | 1.46 | 1.40 | 1.48 | 1.94 | 1.73 | 1.38 | 1.77 |
| Quick ratio | 0.64 | 0.45 | 0.18 | 0.17 | 0.40 | 0.24 | 0.25 | 0.21 | 0.47 | 0.56 | 0.29 | 0.38 | 1.25 | 1.02 | 0.44 | 0.78 |
| Cash ratio | 0.44 | 0.26 | 0.03 | 0.04 | 0.25 | 0.06 | 0.03 | 0.01 | 0.32 | 0.45 | 0.15 | 0.21 | 1.11 | 0.87 | 0.27 | 0.54 |
Leslies Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been fluctuating over the past few quarters but generally remains above 1, suggesting that the company has more current assets than current liabilities. However, there has been some volatility in this ratio, which may warrant further monitoring.
The quick ratio shows a declining trend, indicating that the company's ability to meet its short-term obligations with its most liquid assets has weakened. This may raise concerns about the company's ability to cover its immediate liabilities without relying on inventory.
The cash ratio, which measures the company's ability to pay off its current liabilities with its cash and cash equivalents, has been highly variable. While the ratio has shown some improvement in recent quarters, it still remains relatively low, indicating that the company may have a limited ability to cover its short-term liabilities with cash on hand.
Overall, the liquidity ratios of Leslies Inc suggest that the company may have some inconsistencies in its ability to meet short-term obligations, and further analysis of its working capital management and cash flow practices may be needed to ensure financial stability.
Additional liquidity measure
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 61.24 | 68.75 | 83.44 | 79.94 | 76.85 | 91.38 | 109.50 | 95.57 | 67.73 | 52.80 | 67.26 | 56.71 | 43.29 |
Leslies Inc's cash conversion cycle has fluctuated over the past several quarters, indicating changes in the efficiency of its working capital management. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash received from sales.
From the data provided, Leslies Inc's cash conversion cycle ranged from a low of 43.29 days in September 2021 to a high of 109.50 days in March 2023. A longer cash conversion cycle implies that the company takes more time to generate cash from its operations, potentially leading to liquidity challenges or inefficiencies in managing working capital.
In the most recent quarter ending September 30, 2024, the cash conversion cycle was 61.24 days, showing an improvement from the previous quarter. However, the cycle remains relatively high compared to earlier periods, indicating room for further optimization in managing the company's cash flows.
Analyzing trends in the cash conversion cycle can provide insights into Leslies Inc's efficiency in inventory management, accounts receivable collection, and accounts payable management. By monitoring and potentially reducing the cash conversion cycle, the company can enhance its liquidity position and operational efficiency.