Leslies Inc (LESL)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 55,420 | 112,293 | 343,498 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 35,296 | 49,848 | 43,481 |
| Total current liabilities | US$ in thousands | 225,830 | 347,956 | 309,713 |
| Quick ratio | 0.40 | 0.47 | 1.25 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($55,420K
+ $—K
+ $35,296K)
÷ $225,830K
= 0.40
The quick ratio of Leslies Inc has shown a declining trend over the past three years, dropping from 1.25 in September 2021 to 0.40 in September 2023. This decreasing trend indicates that the company may be facing challenges in meeting its short-term obligations with its most liquid assets. A quick ratio below 1.0 suggests potential liquidity issues as the company may struggle to cover its current liabilities with its current assets excluding inventory.
The significant decrease in the quick ratio from 2021 to 2023 may raise concerns about Leslies Inc's ability to effectively manage its short-term financial commitments. It is important for the company to closely monitor its liquidity position and consider strategies to improve its quick ratio to ensure its financial health and stability in the short term.
Peer comparison
Sep 30, 2023