The Marzetti Company (MZTI)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 161,476 | 163,443 | 88,473 | 60,283 | 188,055 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 186,294 | 183,969 | 168,752 | 165,585 | 173,923 |
| Cash ratio | 0.87 | 0.89 | 0.52 | 0.36 | 1.08 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($161,476K
+ $—K)
÷ $186,294K
= 0.87
The cash ratio for The Marzetti Company has exhibited notable fluctuations over the specified period from June 30, 2021, to June 30, 2025.
As of June 30, 2021, the company maintained a relatively high cash ratio of 1.08, indicating that its cash and cash equivalents were more than sufficient to cover its current liabilities, reflecting a conservative liquidity position. However, by June 30, 2022, the cash ratio decreased significantly to 0.36, suggesting a decline in the company's liquidity position and a reduced capacity to cover current liabilities solely with cash assets.
In the subsequent year, June 30, 2023, the cash ratio experienced a moderate increase to 0.52, signaling a partial recovery in liquidity. The trend continued positively through June 30, 2024, when the cash ratio rose to 0.89, approaching a more balanced liquidity position and indicating a substantial improvement in cash holdings relative to current liabilities.
By June 30, 2025, the cash ratio remained stable at 0.87, slightly below the 2024 figure but still reflecting a strong liquidity stance, with the company's cash reserves close to being able to cover its current liabilities in full.
Overall, the company's cash ratio has demonstrated a pattern of initial decline in 2022, followed by a recovery and stabilization in subsequent years, suggesting efforts to strengthen liquidity and cash management practices. The ratio levels across 2024 and 2025 point toward a prudent liquidity management approach, with the company maintaining ample cash reserves relative to its short-term obligations.
Peer comparison
Jun 30, 2025