Prestige Brand Holdings Inc (PBH)

Cash ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	97,884	46,469	58,489	27,185	32,302
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	106,623	117,048	160,715	143,422	122,138
Cash ratio		0.92	0.40	0.36	0.19	0.26

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($97,884K + $—K) ÷ $106,623K
= 0.92

The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. In the case of Prestige Brand Holdings Inc, the cash ratio has shown fluctuations over the past five years.

As of March 31, 2021, Prestige Brand had a cash ratio of 0.26, indicating that it had $0.26 in cash and cash equivalents for every $1 of current liabilities. The ratio decreased to 0.19 by March 31, 2022, suggesting a more strained liquidity position. However, the company improved its cash ratio to 0.36 by March 31, 2023, and further to 0.40 by March 31, 2024, demonstrating better liquidity management.

The most significant improvement in liquidity was seen by March 31, 2025, with a cash ratio of 0.92, suggesting that Prestige Brand had significantly increased its cash reserves relative to its short-term liabilities. This could indicate improved financial stability and the ability to meet its short-term obligations comfortably.

Overall, the trend in Prestige Brand's cash ratio over the five-year period shows varying levels of liquidity risk and management. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its short-term obligations and manage its cash effectively.