Prestige Brand Holdings Inc (PBH)

Liquidity ratios

Mar 31, 2025 Dec 31, 2024 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 Sep 30, 2020 Jun 30, 2020
Current ratio 4.20 3.68 3.56 3.23 3.20 3.09 2.99 2.66 2.44 2.55 2.21 2.09 2.04 2.04 2.05 3.27 2.21 2.39 1.98 2.24
Quick ratio 2.74 2.13 2.01 1.80 1.91 1.87 1.68 1.44 1.40 1.52 1.24 1.17 1.16 1.15 1.27 2.35 1.20 1.41 1.09 1.29
Cash ratio 0.92 0.50 0.48 0.30 0.40 0.50 0.46 0.37 0.36 0.54 0.28 0.23 0.19 0.16 0.29 1.31 0.26 0.49 0.20 0.44

Prestige Brand Holdings Inc has shown consistently strong liquidity levels based on the current ratio over the past few years. The current ratio has generally been above 2, indicating the company's ability to meet its short-term obligations with its current assets. In the most recent period, the current ratio has increased to 4.20 as of March 31, 2025, suggesting a significant improvement in liquidity.

Looking at the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, Prestige Brand Holdings Inc has also maintained a healthy position. The quick ratio has generally been above 1, showing a strong ability to cover short-term liabilities without relying on inventory. The quick ratio has shown an increasing trend, reaching 2.74 as of March 31, 2025, indicating an even stronger liquidity position.

Furthermore, the cash ratio, which specifically measures the ability to cover current liabilities with cash and cash equivalents, has shown improvement over the periods analyzed. The cash ratio has increased from 0.44 as of June 30, 2020, to 0.92 as of March 31, 2025, demonstrating a higher ability to settle short-term obligations with cash on hand.

Overall, Prestige Brand Holdings Inc's liquidity ratios suggest a consistently strong liquidity position, with improvements seen across the current ratio, quick ratio, and cash ratio over the periods evaluated. This indicates the company's ability to effectively manage its short-term financial obligations and maintain a healthy liquidity position.

Additional liquidity measure

Mar 31, 2025 Dec 31, 2024 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 Sep 30, 2020 Jun 30, 2020
Cash conversion cycle days 155.73 148.52 143.50 136.99 129.20 134.64 135.29 131.15 126.25 122.16 111.86 106.89 97.36 100.15 111.75 114.70 107.97 123.96 99.08 128.26

The cash conversion cycle of Prestige Brand Holdings Inc has fluctuated over the past few periods. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From June 30, 2020, when the cash conversion cycle was 128.26 days, to March 31, 2025, where it reached 155.73 days, there has been a general trend of increasing days within the cycle. This indicates a potential inefficiency in the company's operations as it takes longer to convert resources into cash.

The company should focus on managing its inventory levels more effectively, improving its accounts receivable collection processes, and optimizing its accounts payable to reduce the cash conversion cycle. A lengthy cash conversion cycle can tie up valuable resources and impact the company's liquidity and overall financial performance. Monitoring and addressing the factors contributing to the elongated cycle can help improve the company's operational efficiency and financial health in the long run.