Sally Beauty Holdings Inc (SBH)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 107,961 | 123,001 | 70,558 | 400,959 | 514,151 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 592,669 | 579,257 | 667,914 | 664,881 | 563,362 |
| Cash ratio | 0.18 | 0.21 | 0.11 | 0.60 | 0.91 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($107,961K
+ $—K)
÷ $592,669K
= 0.18
The cash ratio of Sally Beauty Holdings Inc has displayed variability over the past five years. In particular, the ratio has decreased from 0.91 in 2020 to 0.18 in 2024. This downward trend indicates a decrease in the company's ability to cover its short-term liabilities solely with cash and cash equivalents. The sharp decline in 2022, with a ratio of 0.11, suggests a potential liquidity strain during that period. However, the ratio improved in 2023 to 0.21, indicating a better cash position compared to the previous year. It is essential for the company to carefully manage its liquidity position to ensure it can meet its short-term obligations efficiently. Further analysis of the company's cash management practices and liquidity position may provide additional insights into its financial health.
Peer comparison
Sep 30, 2024