Post Holdings Inc (POST)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 512,400 | 544,200 | 452,400 | 441,600 | 445,100 |
| Total current liabilities | US$ in thousands | 805,300 | 823,800 | 1,049,200 | 974,400 | 802,900 |
| Quick ratio | 0.75 | 1.49 | 1.21 | 1.68 | 1.86 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($93,300K
+ $—K
+ $512,400K)
÷ $805,300K
= 0.75
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates better liquidity and financial strength.
Based on the data provided, Post Holdings Inc's quick ratio has fluctuated over the past five years. In 2023, the quick ratio was 0.83, which represents a significant decline from the previous year. This means that for every $1 of current liabilities, the company only had $0.83 of liquid assets available to cover those obligations. This decline may raise concerns about the company's short-term liquidity.
In 2022, the quick ratio was 1.61, which indicated a relatively strong ability to meet short-term obligations with liquid assets. However, there was a decline from the previous year, when the quick ratio was 1.41. This suggests a decrease in liquidity from 2021 to 2022.
In 2021, the quick ratio was 1.41, indicating that the company had $1.41 of liquid assets for every $1 of current liabilities. This was a decrease from 1.73 in 2020 and 1.91 in 2019, indicating a declining trend in liquidity over the years.
The declining trend in the quick ratio from 2019 to 2023 indicates a potential deterioration in the company's ability to cover short-term obligations with its most liquid assets. This may raise concerns about Post Holdings Inc's short-term financial health and its ability to manage its current liabilities.
It would be important for stakeholders and investors to monitor this trend closely and assess the company's plans to address any liquidity challenges.
Peer comparison
Sep 30, 2023