Sally Beauty Holdings Inc (SBH)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 107,961 | 123,001 | 70,558 | 400,959 | 514,151 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 33,635 | 33,421 | 34,102 | 32,623 | 35,590 |
| Total current liabilities | US$ in thousands | 592,669 | 579,257 | 667,914 | 664,881 | 563,362 |
| Quick ratio | 0.24 | 0.27 | 0.16 | 0.65 | 0.98 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($107,961K
+ $—K
+ $33,635K)
÷ $592,669K
= 0.24
The quick ratio of Sally Beauty Holdings Inc has varied significantly over the past five years. In 2020, the quick ratio was relatively high at 0.98, indicating a strong ability to meet its short-term liabilities with its most liquid assets. However, this ratio declined sharply in 2021 to 0.65, suggesting a potential liquidity strain.
In 2022, the quick ratio decreased even further to 0.16, signaling a significant deterioration in the company's ability to cover its short-term obligations with its quick assets. This may raise concerns about the company's liquidity position and its ability to meet its immediate financial obligations.
The quick ratio improved in 2023 to 0.27, but it remained relatively low compared to previous years, indicating ongoing liquidity challenges. The ratio further decreased in 2024 to 0.24, suggesting that Sally Beauty Holdings Inc may still face difficulties in meeting its short-term liabilities using its quick assets.
Overall, the downward trend in the quick ratio over the past few years for Sally Beauty Holdings Inc indicates a potential strain on liquidity and the need for close monitoring of the company's ability to maintain adequate levels of liquid assets to cover its short-term obligations.
Peer comparison
Sep 30, 2024