Prestige Brand Holdings Inc (PBH)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash	US$ in thousands	46,469	58,489	27,185	32,302	94,760
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	176,775	167,016	139,330	114,671	150,517
Total current liabilities	US$ in thousands	117,048	160,715	143,422	122,138	149,881
Quick ratio		1.91	1.40	1.16	1.20	1.64

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($46,469K + $—K + $176,775K) ÷ $117,048K
= 1.91

The quick ratio of Prestige Brand Holdings Inc has shown a positive trend over the past five years. The ratio increased from 1.64 in 2020 to 1.91 in 2024, indicating the company's improved ability to meet its short-term obligations using its most liquid assets.

A quick ratio above 1 implies that the company has more than enough liquid assets to cover its current liabilities, providing a buffer for unexpected expenses or economic downturns.

The consistent improvement in the quick ratio suggests that Prestige Brand Holdings Inc has been managing its liquidity effectively, which is a positive signal for investors and creditors regarding the company's financial health and ability to withstand short-term financial challenges.