Vestis Corporation (VSTS)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 787,389 | 1,019,960 | 1,004,750 | 1,027,650 | 1,019,960 | 1,039,340 | 1,035,010 | 23,736 | 987,281 | — |
| Total current liabilities | US$ in thousands | 456,102 | 429,792 | 400,154 | 393,805 | 395,525 | 367,298 | 379,244 | 368,724 | 402,195 | — |
| Current ratio | 1.73 | 2.37 | 2.51 | 2.61 | 2.58 | 2.83 | 2.73 | 0.06 | 2.45 | — |
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 significant fluctuations over the past few quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
In the most recent period ending September 30, 2024, the current ratio stands at 1.73, indicating that the company may have slightly fewer current assets to cover its short-term obligations compared to the previous quarter. However, a current ratio above 1 suggests that Vestis Corporation still has more current assets than current liabilities, which is a positive sign.
Looking back at the trend over the past year, the current ratio has generally been above 2, indicating a strong ability to meet short-term obligations with current assets. However, there was a significant drop in the current ratio in the December 31, 2022 period, where it fell to a very low level of 0.06. This suggests a potential liquidity issue or an anomaly in the financial data for that period.
It is important for Vestis Corporation to maintain a stable and healthy current ratio above 1 to ensure its short-term solvency and ability to meet financial obligations as they come due. Management should monitor the current ratio closely and investigate any significant fluctuations to address potential liquidity challenges or irregularities in the financial statements.
Peer comparison
Sep 30, 2024