Prestige Brand Holdings Inc (PBH)

Quick ratio

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Cash US$ in thousands 97,884 46,469 58,489 27,185 32,302
Short-term investments US$ in thousands — — — — —
Receivables US$ in thousands 194,293 176,775 167,016 139,330 114,671
Total current liabilities US$ in thousands 106,623 117,048 160,715 143,422 122,138
Quick ratio 2.74 1.91 1.40 1.16 1.20

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($97,884K + $—K + $194,293K) ÷ $106,623K
= 2.74

The quick ratio of Prestige Brand Holdings Inc has shown a generally positive trend over the past five years, indicating an improving liquidity position. The quick ratio stood at 1.20 as of March 31, 2021, and has since increased steadily to reach 2.74 as of March 31, 2025. This suggests that the company has an increasing ability to cover its short-term obligations with its most liquid assets.

A quick ratio above 1.0 indicates that Prestige Brand Holdings Inc has an adequate level of liquid assets to cover its current liabilities. The upward trend in the quick ratio over the years reflects a strengthening financial position and improved liquidity management. Overall, the increasing quick ratio highlights the company's ability to meet its short-term financial commitments effectively.