Post Holdings Inc (POST)

Liquidity ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 2.65 2.02 1.93
Quick ratio 1.73 0.75 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 1.86 1.17 1.00
Cash ratio 1.03 0.12 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 1.31 0.51 0.23

Post Holdings Inc's liquidity ratios show fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged from 1.84 to 2.79. A higher current ratio is generally preferred as it indicates a stronger ability to meet short-term obligations. Post Holdings Inc's current ratio peaked in Q1 2023 at 2.79 but dipped in subsequent quarters.

The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, has shown a similar pattern of fluctuations, ranging from 0.83 to 1.94. Post Holdings Inc's quick ratio dropped to its lowest level in Q4 2023 at 0.83 but rebounded in later quarters.

The cash ratio, which is the most conservative measure of liquidity that only considers cash and cash equivalents, has varied between 0.19 and 1.34. Post Holdings Inc's cash ratio hit its lowest point in Q4 2023 at 0.19 before gradually improving in the following quarters.

Overall, Post Holdings Inc's liquidity ratios indicate some variability in its ability to cover short-term obligations with its current assets. Management should closely monitor these ratios to ensure the company maintains a healthy liquidity position to meet its financial obligations in a timely manner.

Additional liquidity measure

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 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 45.88 50.62 50.08

The cash conversion cycle of Post Holdings Inc has shown fluctuations over the past eight quarters. The cycle measures the time it takes for a company to convert its investment in inventory into cash received from customers.

In Q1 2024, the cash conversion cycle was 57.09 days, slightly higher than in Q4 2023 at 56.93 days. This indicates a relatively stable performance in converting inventory into cash during these two quarters.

Looking back further, the longest cash conversion cycle was observed in Q3 2023 at 63.01 days, suggesting inefficiencies in managing inventory and collecting cash during that period. In contrast, the cycle improved significantly in Q2 2023 and Q1 2023, with 50.73 days and 48.48 days respectively, indicating better inventory and cash flow management.

Comparing the most recent quarter to the same quarter a year ago, there has been an increasing trend in the cash conversion cycle, which could imply challenges in managing working capital efficiently. However, the overall trend remains relatively stable, with some quarters being more efficient in converting inventory to cash faster than others.

It is essential for Post Holdings Inc to monitor and analyze its cash conversion cycle consistently to identify areas for improvement in inventory management, accounts receivable collection, and overall working capital efficiency.