Vestis Corporation (VSTS)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 48,857 | 36,051 | 30,000 | 30,000 | -23,736 | 23,736 | — |
| Short-term investments | US$ in thousands | — | — | — | — | 47,472 | — | — |
| Total current liabilities | US$ in thousands | 393,805 | 395,525 | 367,298 | 379,244 | 368,724 | 402,195 | — |
| Cash ratio | 0.12 | 0.09 | 0.08 | 0.08 | 0.06 | 0.06 | — |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($48,857K
+ $—K)
÷ $393,805K
= 0.12
The cash ratio of Vestis Corporation has been gradually increasing over the past year, indicating an improvement in the company's ability to cover its short-term liabilities with its cash and cash equivalents. As of December 31, 2023, the cash ratio stood at 0.12, implying that the company had $0.12 of cash and cash equivalents for every dollar of current liabilities. This signifies a stronger liquidity position compared to the previous quarters, where the cash ratio ranged from 0.06 to 0.09.
The upward trend in the cash ratio suggests that Vestis Corporation has been effectively managing its cash resources and maintaining liquidity to meet its short-term financial obligations. A higher cash ratio provides a cushion against unexpected expenses or downturns in the business environment, reducing the company's reliance on external financing.
Overall, the increasing cash ratio reflects positively on Vestis Corporation's liquidity management and financial health, indicating a strengthened ability to handle short-term financial challenges and seize potential business opportunities.
Peer comparison
Dec 31, 2023