Sally Beauty Holdings Inc (SBH)
Liquidity ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.20 | 2.12 | 1.99 | 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 |
| Quick ratio | 0.24 | 0.22 | 0.20 | 0.43 | 0.27 | 0.19 | 0.15 | 0.20 | 0.16 | 0.17 | 0.45 | 0.48 | 0.65 | 0.48 | 0.51 | 0.98 | 0.98 | 0.94 | 0.44 | 0.18 |
| Cash ratio | 0.18 | 0.16 | 0.15 | 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 |
Sally Beauty Holdings Inc's liquidity ratios reveal fluctuations over the past few quarters.
The current ratio has generally been above 2x, indicating the company's ability to cover its short-term obligations with its current assets. However, there has been some variability in the ratio, which could signal changes in the company's liquidity position.
On the other hand, the quick ratio has shown significant fluctuations, dropping to as low as 0.15x in certain quarters. This suggests that the company may have difficulty meeting its immediate liabilities using only its most liquid assets.
The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has also varied widely. While it has generally been low, indicating a reliance on other current assets to meet short-term obligations, the fluctuations suggest changing liquidity levels.
Overall, Sally Beauty Holdings Inc's liquidity ratios indicate a fluctuating liquidity position, with the company potentially facing challenges in quickly meeting its short-term obligations in some periods. Further monitoring and analysis of liquidity trends would be important for assessing the company's financial health.
Additional liquidity measure
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 84.77 | 87.19 | 84.08 | 82.77 | 80.08 | 81.43 | 81.34 | 75.00 | 72.10 | 81.12 | 78.64 | 71.63 | 64.25 | 75.41 | 76.38 | 73.71 | 68.46 | 68.70 | 81.41 | 80.40 |
The cash conversion cycle of Sally Beauty Holdings Inc has shown some fluctuations over the past few quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources back into cash.
From December 2019 to September 2020, the cash conversion cycle remained relatively stable, with a slight increase towards the end of this period. However, from September 2020 to March 2021, there was a noticeable increase in the cash conversion cycle, peaking at 81.41 days in March 2021. This may indicate delays in converting inventory into sales and ultimately cash during that period.
Subsequently, the cash conversion cycle showed some improvements from March 2021 to December 2021, reaching a low of 64.25 days in December 2021. This suggests a more efficient management of inventory and receivables during this period.
However, from March 2022 to June 2023, there was an upward trend in the cash conversion cycle, reaching 81.43 days in June 2023. This increase may indicate potential challenges in managing working capital efficiently during that time.
The cash conversion cycle improved in the following quarters, showing a decreasing trend from June 2023 to September 2024, with the cycle ranging from 80.08 days to 84.77 days. This may suggest enhanced efficiency in managing inventory, receivables, and payables, leading to a quicker conversion of investments into cash.
Overall, the fluctuations in the cash conversion cycle of Sally Beauty Holdings Inc indicate varying levels of efficiency in managing working capital over the analyzed periods. Continued monitoring and improvement in inventory and cash management processes could help optimize the cash conversion cycle and enhance the company's financial performance.