Sally Beauty Holdings Inc (SBH)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,228,000 | 1,132,400 | 1,383,580 | 1,433,100 | 1,163,550 |
| Total current liabilities | US$ in thousands | 579,257 | 667,914 | 664,881 | 563,362 | 456,079 |
| Current ratio | 2.12 | 1.70 | 2.08 | 2.54 | 2.55 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,228,000K ÷ $579,257K
= 2.12
The current ratio of Sally Beauty Holdings Inc has fluctuated over the past five years. The current ratio measures the company's ability to pay its short-term liabilities with its short-term assets.
In 2023, the current ratio strengthened to 2.12, indicating that the company had $2.12 in current assets for every $1 of current liabilities. This was a notable improvement from the previous year when the ratio was 1.70.
In 2022, the current ratio had decreased from the prior two years, falling to 1.70. This signaled a potential decrease in the company's short-term liquidity compared to the previous year.
The current ratio was 2.08 in 2021, showing a slight decrease from 2.54 in 2020 and 2.55 in 2019. Despite the fluctuations, the ratios for these years still indicated strong short-term liquidity, with more than $2 in current assets for every $1 of current liabilities.
Overall, while the company's current ratio has fluctuated in recent years, it has consistently remained above 1.5, indicating a healthy ability to meet short-term obligations with current assets.
Peer comparison
Sep 30, 2023