Post Holdings Inc (POST)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 93,300 | 586,500 | 664,500 | 1,187,900 | 1,050,700 |
| Short-term investments | US$ in thousands | — | 94,800 | 152,600 | 6,800 | — |
| Total current liabilities | US$ in thousands | 805,300 | 823,800 | 1,049,200 | 974,400 | 802,900 |
| Cash ratio | 0.12 | 0.83 | 0.78 | 1.23 | 1.31 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($93,300K
+ $—K)
÷ $805,300K
= 0.12
The cash ratio of Post Holdings Inc has shown a declining trend over the past five years. As of September 30, 2023, the cash ratio stands at 0.19, indicating a significant decrease from the previous year's ratio of 0.95. This suggests a lower level of liquidity and ability to cover short-term liabilities with cash and cash equivalents compared to the previous year.
The declining trend in the cash ratio may raise concerns about the company's ability to meet its immediate financial obligations using its available cash resources. It is important for stakeholders to assess the company's cash management and working capital practices in light of this trend.
Further analysis of the company's cash flow statement and working capital management may provide insights into the causes behind the decreasing cash ratio and assist in evaluating the company's overall financial health and liquidity position.
Peer comparison
Sep 30, 2023