Vestis Corporation (VSTS)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,019,960 | 987,281 | 931,924 | — |
| Total current liabilities | US$ in thousands | 395,525 | 402,195 | 383,322 | — |
| Current ratio | 2.58 | 2.45 | 2.43 | — |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,019,960K ÷ $395,525K
= 2.58
The current ratio of Vestis Corporation has exhibited a generally positive trend over the past three years, increasing from 2.43 in 2021 to 2.45 in 2022 and further to 2.58 in 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has been improving steadily. A current ratio above 1.0 is typically considered healthy, as it suggests that the company has sufficient current assets to cover its current liabilities. Vestis Corporation's current ratio well above 1.0 in each of the last three years signals a strong liquidity position, providing a cushion against potential short-term financial challenges. However, it is important to continue monitoring this ratio to ensure that the company maintains its ability to meet its current obligations effectively.
Peer comparison
Sep 30, 2023