Leslies Inc (LESL)
Quick ratio
| 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 108,505 | 74,438 | 8,436 | 8,394 | 55,420 | 19,430 | 8,701 | 2,691 | 112,293 | 193,130 | 51,971 | 53,341 | 343,498 | 307,395 | 88,732 | 102,809 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 50,190 | 54,185 | 39,043 | 26,717 | 35,296 | 55,699 | 65,155 | 50,887 | 49,848 | 50,251 | 46,106 | 43,508 | 43,481 | 51,084 | 55,332 | 46,639 |
| Total current liabilities | US$ in thousands | 246,919 | 285,881 | 262,101 | 204,573 | 225,830 | 315,297 | 292,391 | 254,594 | 347,956 | 432,895 | 338,187 | 254,208 | 309,713 | 352,437 | 325,761 | 191,603 |
| 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 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($108,505K
+ $—K
+ $50,190K)
÷ $246,919K
= 0.64
The quick ratio of Leslies Inc has shown fluctuations over the past several quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
Looking at the trend in Leslies Inc's quick ratio, it can be observed that there have been periods of both improvement and deterioration. For instance, the quick ratio significantly improved in the third quarter of 2021 and peaked at 1.25, indicating a strong liquidity position at that time. However, the ratio has since declined steadily and fluctuated around lower levels.
The most recent quick ratio of 0.64 as of September 30, 2024, reflects a decrease from the previous quarter. This drop may raise concerns about the company's ability to cover its short-term liabilities with its quick assets. It suggests that Leslies Inc may need to carefully manage its liquidity position to ensure it can meet its immediate financial obligations.
Further analysis and monitoring of the quick ratio, along with other liquidity metrics, will be important to assess Leslies Inc's financial health and its ability to manage short-term financial challenges effectively.
Peer comparison
Sep 30, 2024