Post Holdings Inc (POST)
Liquidity ratios
| 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 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.36 | 2.05 | 2.16 | 1.99 | 1.84 | 2.06 | 2.73 | 2.79 | 2.70 | 3.02 | 2.60 | 2.59 | 1.99 | 2.26 | 2.32 | 2.54 | 2.35 | 2.85 | 3.23 | 2.18 |
| Quick ratio | 1.45 | 1.02 | 1.08 | 1.73 | 0.77 | 0.99 | 1.82 | 1.90 | 1.49 | 1.71 | 1.78 | 1.79 | 1.21 | 1.44 | 1.46 | 1.88 | 1.67 | 1.96 | 2.35 | 1.43 |
| Cash ratio | 0.83 | 0.39 | 0.40 | 1.03 | 0.13 | 0.28 | 1.08 | 1.21 | 0.83 | 0.98 | 1.18 | 1.23 | 0.78 | 0.83 | 0.83 | 1.38 | 1.22 | 1.40 | 1.60 | 0.92 |
Post Holdings Inc's liquidity ratios have fluctuated over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 2. This indicates that the company has a strong ability to meet its short-term liabilities using its current assets.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown more variability. The ratio has ranged from 0.77 to 1.90 over the past few quarters, with the latest ratio standing at 1.02. This suggests that the company may have some difficulty meeting its short-term obligations without relying on inventory in certain periods.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has also fluctuated significantly. It has ranged from 0.13 to 1.60, with the latest ratio at 0.39. This indicates that the company's ability to cover its current liabilities solely with cash has varied widely.
Overall, while Post Holdings Inc's current ratio indicates a generally healthy liquidity position, the variability in the quick and cash ratios suggests that the company may need to manage its non-cash current assets more effectively to ensure consistent liquidity in the future.
Additional liquidity measure
| 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 44.42 | 51.24 | 53.40 | 57.09 | 56.84 | 60.17 | 48.31 | 46.09 | 41.97 | 46.46 | 44.78 | 56.80 | 40.39 | 66.14 | 65.26 | 52.41 | 54.19 | 54.11 | 57.43 | 52.83 |
The cash conversion cycle of Post Holdings Inc has shown some fluctuation over the past quarters. The cycle represents the time it takes for the company to convert its investments in inventory into cash receipts from customers.
The trend indicates that the company's cash conversion cycle has been relatively stable overall, with some variations quarter by quarter. In recent quarters, the cycle has ranged between 41.97 days and 60.17 days, with an average around 50 days.
A lower cash conversion cycle is generally favorable as it implies that the company is able to efficiently manage its working capital and generate cash flow from its operations. On the other hand, a longer cycle can indicate inefficiencies in inventory management or challenges in collecting receivables.
Post Holdings Inc should continue to monitor its cash conversion cycle closely and identify any areas for improvement to optimize its working capital efficiency and maintain a healthy cash flow position.