Sally Beauty Holdings Inc (SBH)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 120,999 | 123,001 | 74,337 | 61,620 | 99,071 | 70,558 | 101,318 | 227,413 | 298,140 | 400,959 | 270,317 | 408,321 | 537,644 | 514,151 | 838,811 | 364,414 | 67,262 | 71,495 | 57,855 | 89,777 |
| Short-term investments | US$ in thousands | 91,073 | — | — | — | 3,627 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 573,069 | 579,257 | 565,637 | 630,641 | 677,266 | 667,914 | 774,961 | 574,269 | 681,752 | 664,881 | 650,205 | 875,051 | 590,336 | 563,362 | 937,732 | 915,836 | 594,605 | 456,079 | 441,054 | 420,743 |
| Cash ratio | 0.37 | 0.21 | 0.13 | 0.10 | 0.15 | 0.11 | 0.13 | 0.40 | 0.44 | 0.60 | 0.42 | 0.47 | 0.91 | 0.91 | 0.89 | 0.40 | 0.11 | 0.16 | 0.13 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($120,999K
+ $91,073K)
÷ $573,069K
= 0.37
The cash ratio of Sally Beauty Holdings Inc has fluctuated over the past several quarters. The cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, reached its highest point in Q2 2022 at 0.48, signifying a strong liquidity position at that time. However, the ratio declined in subsequent quarters, with Q1 2024 and Q4 2023 both showing a cash ratio of 0.31.
The relatively stable cash ratio of around 0.31 in the most recent quarters indicates that Sally Beauty Holdings Inc has maintained a consistent ability to cover its short-term liabilities with its available cash reserves. The decrease from the peak of 0.48 in Q2 2022 to the current level suggests a potential change in the company's cash management practices or business environment.
Overall, while the cash ratio has shown some variability, the current level of 0.31 still reflects a healthy liquidity position for Sally Beauty Holdings Inc. It is essential for the company to continue monitoring its cash position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023