Sally Beauty Holdings Inc (SBH)
Quick ratio
| 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 | US$ in thousands | 107,961 | 97,375 | 97,174 | 120,999 | 123,001 | 74,337 | 61,620 | 99,071 | 70,558 | 101,318 | 227,413 | 298,140 | 400,959 | 270,317 | 408,321 | 537,644 | 514,151 | 838,811 | 364,414 | 67,262 |
| Short-term investments | US$ in thousands | — | — | — | 91,073 | — | — | — | 3,627 | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 33,635 | 32,766 | 34,693 | 32,164 | 33,421 | 32,888 | 30,540 | 32,671 | 34,102 | 31,462 | 28,615 | 29,588 | 32,623 | 44,660 | 39,294 | 40,046 | 35,590 | 42,818 | 42,802 | 41,142 |
| Total current liabilities | US$ in thousands | 592,669 | 594,925 | 643,769 | 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 |
| 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 |
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 fluctuated over the past several quarters, indicating variations in the company's ability to meet short-term obligations with its most liquid assets. The quick ratio ranged from a low of 0.15 to a high of 0.98 during the period under review.
The quick ratio was relatively low in the first half of 2023 but improved significantly by the end of 2023 and into 2024. This suggests that the company may have faced liquidity challenges earlier but managed to enhance its liquidity position later on.
The quick ratio provides a measure of the company's ability to cover its current liabilities with its most liquid assets, excluding inventory. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations, while a ratio above 1 signifies a stronger ability to cover these obligations.
Overall, a quick ratio of less than 1 in several quarters may raise concerns about the company's short-term liquidity position and ability to meet its immediate obligations. It is important for investors and stakeholders to monitor trends in the quick ratio over time to assess the company's financial health and liquidity management.
Peer comparison
Sep 30, 2024