Leslies Inc (LESL)
Liquidity ratios
| 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 | 1.92 | 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 | 0.17 | 0.40 | 0.24 | 0.03 | 0.21 | 0.47 | 0.56 | 0.29 | 0.38 | 1.25 | 1.02 | 0.44 | 0.78 |
| Cash ratio | 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 show fluctuations over the past several quarters. The current ratio, which measures the company's ability to meet short-term obligations with current assets, has ranged from a low of 1.40 to a high of 2.02. This ratio has generally been above 1, indicating that the company has generally had sufficient current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has varied widely, ranging from a low of 0.03 to a high of 1.25. This suggests that Leslies Inc's ability to cover its short-term liabilities with its most liquid assets has been inconsistent.
The cash ratio, which is the most conservative measure of liquidity, has also fluctuated, with values ranging from 0.01 to 1.11. This ratio indicates how well the company's cash and cash equivalents can cover its current liabilities, showing that Leslies Inc has had periods of both strong and weak cash positions relative to its short-term debt obligations.
Overall, the liquidity ratios of Leslies Inc reflect a mixed performance in terms of its ability to meet short-term obligations with liquid assets. Investors and creditors should closely monitor these ratios to assess the company's short-term financial health.
Additional liquidity measure
| 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 | 85.49 | 81.93 | 97.15 | 100.93 | 95.57 | 67.73 | 52.80 | 67.26 | 56.71 | 43.29 |
The cash conversion cycle (CCC) of Leslies Inc over the past ten quarters has shown some fluctuations. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From Dec 31, 2021 to Dec 31, 2023, the CCC increased from 43.29 days to 85.49 days, indicating that it took longer for the company to convert resources into cash during this period. In the most recent quarter, there was a slight improvement in the CCC compared to the prior quarter, suggesting that the company may have managed its working capital more efficiently.
The highest CCC observed was in March 31, 2023 (100.93 days), indicating a longer cycle of converting cash invested in resources back into cash. On the other hand, the lowest CCC was seen in June 30, 2022 (52.80 days), suggesting more effective management of working capital during that period.
Overall, Leslies Inc's CCC has shown variability over the past two years, with some quarters indicating a longer cash conversion cycle than others. It is important for the company to continually monitor and manage its working capital effectively to ensure a healthy cash conversion cycle and optimize its financial performance.