Sally Beauty Holdings Inc (SBH)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,305,310 | 1,228,000 | 1,132,400 | 1,383,580 | 1,433,100 |
| Total current liabilities | US$ in thousands | 592,669 | 579,257 | 667,914 | 664,881 | 563,362 |
| Current ratio | 2.20 | 2.12 | 1.70 | 2.08 | 2.54 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,305,310K ÷ $592,669K
= 2.20
The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, for Sally Beauty Holdings Inc has fluctuated over the past five years. The current ratio was 2.20 as of September 30, 2024, indicating that the company had $2.20 in current assets for every $1 in current liabilities. This reflects an improvement compared to the previous year, where the current ratio was 2.12.
In 2022, the current ratio was 1.70, signaling a lower level of liquidity compared to the surrounding years. The company's liquidity position was stronger in 2021 with a current ratio of 2.08, and even more so in 2020 with a current ratio of 2.54.
Overall, the current ratio for Sally Beauty Holdings Inc has shown some volatility in recent years, with the most recent data suggesting an improvement in liquidity compared to the prior year. It is essential for the company to maintain a healthy current ratio to ensure it can meet its short-term obligations effectively.
Peer comparison
Sep 30, 2024