Vestis Corporation (VSTS)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 787,389 | 1,019,960 | 987,281 | 931,924 | — |
| Total current liabilities | US$ in thousands | 456,102 | 395,525 | 402,195 | 383,322 | — |
| Current ratio | 1.73 | 2.58 | 2.45 | 2.43 | — |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $787,389K ÷ $456,102K
= 1.73
The current ratio of Vestis Corporation has shown a downward trend over the past three years, decreasing from 2.58 in 2023 to 1.73 in 2024. This indicates a reduction in the company's short-term liquidity and ability to cover its current liabilities with its current assets. While a current ratio above 1 is generally considered healthy, the decreasing trend suggests a potential concern regarding the company's ability to meet its short-term obligations. Further analysis should be conducted to determine the reasons behind this declining trend and to assess the overall financial health of Vestis Corporation.
Peer comparison
Sep 30, 2024