Monro Muffler Brake Inc (MNRO)

Cash ratio

Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Cash and cash equivalents US$ in thousands 6,561 4,884 7,948 29,960 345
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 455,156 449,177 321,964 290,616 254,936
Cash ratio 0.01 0.01 0.02 0.10 0.00

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,561K + $—K) ÷ $455,156K
= 0.01

The cash ratio of Monro Muffler Brake Inc has been relatively low and inconsistent over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Monro Muffler Brake Inc's cash ratio has fluctuated between 0.00 and 0.10 during this period.

A cash ratio of 0.01 suggests that for every dollar of current liabilities, the company has only one cent in cash and cash equivalents available to cover those obligations. This indicates a limited ability to meet short-term obligations using its readily available cash resources.

The trend over the five-year period shows that the company had a significantly low cash ratio in 2020 before experiencing a substantial increase to 0.10 in 2021. However, the cash ratio dropped back to 0.01 in the following years.

Overall, the consistently low cash ratio of Monro Muffler Brake Inc raises concerns about its liquidity and ability to meet short-term financial obligations solely through its cash reserves. Investors and creditors may view this as a risk factor when assessing the company's financial health and stability.


Peer comparison

Mar 31, 2024

Company name
Symbol
Cash ratio
Monro Muffler Brake Inc
MNRO
0.01
Mister Car Wash Inc
MCW
0.11