Sally Beauty Holdings Inc (SBH)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,262,860 | 1,228,000 | 1,199,400 | 1,209,010 | 1,219,200 | 1,132,400 | 1,243,120 | 1,301,680 | 1,415,530 | 1,383,580 | 1,329,110 | 1,466,450 | 1,545,880 | 1,433,100 | 1,763,340 | 1,449,040 | 1,189,040 | 1,163,550 | 1,160,450 | 1,174,140 |
| 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 |
| Current ratio | 2.20 | 2.12 | 2.12 | 1.92 | 1.80 | 1.70 | 1.60 | 2.27 | 2.08 | 2.08 | 2.04 | 1.68 | 2.62 | 2.54 | 1.88 | 1.58 | 2.00 | 2.55 | 2.63 | 2.79 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,262,860K ÷ $573,069K
= 2.20
The current ratio of Sally Beauty Holdings Inc has shown a generally positive trend over the past eight quarters, starting at 1.60 in Q2 2022 and reaching a peak of 2.20 in Q1 2024. This indicates that the company has improved its short-term liquidity position by increasing its ability to cover its current liabilities with its current assets.
Sally Beauty's current ratio has consistently remained above 1.5, which indicates that the company has more than enough current assets to cover its current liabilities. A current ratio of 2.0 or higher is generally considered healthy as it suggests that the company is well-positioned to meet its short-term obligations.
The fluctuations in the current ratio over the quarters may reflect changes in the company's working capital management and efficiency in utilizing its current assets to meet its short-term financial obligations. Overall, the upward trend in the current ratio demonstrates an improvement in Sally Beauty's liquidity position, providing a positive indicator of the company's financial health in the short term.
Peer comparison
Dec 31, 2023