Vestis Corporation (VSTS)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 36,051 | 23,736 | 41,106 | — |
| Short-term investments | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 395,525 | 402,195 | 383,322 | — |
| Cash ratio | 0.09 | 0.06 | 0.11 | — |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($36,051K
+ $—K)
÷ $395,525K
= 0.09
The cash ratio of Vestis Corporation has fluctuated over the past three years. In 2021, the cash ratio stood at 0.11, indicating that the company had $0.11 in cash for every $1 of current liabilities. This suggests a strong liquidity position at that time. However, in 2022, the cash ratio decreased to 0.06, implying a decrease in the company's ability to cover its short-term obligations with its available cash.
By the end of 2023, the cash ratio improved to 0.09, reflecting a slight enhancement in liquidity compared to the previous year but still below the level observed in 2021. It is important for Vestis Corporation to continue monitoring and managing its cash position effectively to ensure it can meet its short-term liabilities as they come due. Further analysis and comparison to industry benchmarks may provide additional insights into the company's liquidity position.
Peer comparison
Sep 30, 2023