Post Holdings Inc (POST)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,478,500 | 2,223,400 | 2,086,100 | 2,287,800 | 2,126,300 |
| Total current liabilities | US$ in thousands | 805,300 | 823,800 | 1,049,200 | 974,400 | 802,900 |
| Current ratio | 1.84 | 2.70 | 1.99 | 2.35 | 2.65 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,478,500K ÷ $805,300K
= 1.84
The current ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations with its short-term assets. A higher current ratio indicates a better ability to meet short-term liabilities. Let's analyze Post Holdings Inc's current ratio over the past five years.
In September 2023, Post Holdings Inc's current ratio was 1.84, representing a decrease from the previous year. This implies that the company's ability to meet short-term liabilities with short-term assets decreased compared to the prior year.
In September 2022, the current ratio was 2.70, reflecting a strong ability to cover short-term obligations with short-term assets. This high ratio indicates a robust liquidity position and suggests that the company had more than enough current assets to cover its current liabilities.
In September 2021, the current ratio was 1.99, indicating a slight decrease from the previous year. Although the ratio remained above 1, signifying that the company could cover its short-term obligations with its short-term assets, the decrease suggests a potential weakening of liquidity.
In September 2020, the current ratio was 2.35, demonstrating a strong ability to meet short-term obligations, similar to the ratio in 2022.
In September 2019, the current ratio stood at 2.65, indicating a robust liquidity position.
Overall, the trend in Post Holdings Inc's current ratio shows fluctuations over the past five years, with periods of high liquidity in 2022 and 2019, and lower ratios in 2023 and 2021. This suggests potential fluctuations in the company's ability to cover short-term liabilities with short-term assets. It will be important to consider the reasons behind these fluctuations to understand the company's changing liquidity position.
Peer comparison
Sep 30, 2023