WD-40 Company (WDFC)
Cash ratio
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 46,699 | 45,300 | 55,443 | 50,317 | 48,143 | 38,403 | 37,992 | 36,882 | 37,843 | 40,799 | 43,322 | 59,519 | 85,961 | 80,362 | 72,381 | 65,844 | 56,462 | 88,555 | 30,503 | 28,680 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 103,500 | 105,241 | 110,431 | 98,820 | 88,842 | 95,309 | 116,596 | 113,643 | 110,820 | 96,269 | 83,389 | 81,058 | 85,936 | 79,118 | 71,883 | 66,854 | 60,116 | 117,749 | 95,424 | 81,020 |
| Cash ratio | 0.45 | 0.43 | 0.50 | 0.51 | 0.54 | 0.40 | 0.33 | 0.32 | 0.34 | 0.42 | 0.52 | 0.73 | 1.00 | 1.02 | 1.01 | 0.98 | 0.94 | 0.75 | 0.32 | 0.35 |
August 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($46,699K
+ $—K)
÷ $103,500K
= 0.45
The cash ratio of WD-40 Company has shown some fluctuation over the past few periods.
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger ability to meet short-term obligations with available cash.
Looking at the trend, the cash ratio has been relatively stable between May 2020 and February 2022, ranging from 0.32 to 0.42. However, there was a significant increase in the ratio from 0.52 in February 2022 to 1.02 in May 2021, indicating a substantial increase in cash reserves or a decrease in short-term liabilities during that period.
Subsequently, the cash ratio declined and fluctuated between 0.32 and 0.54 from August 2021 to August 2024. This variability could suggest changes in the company's cash management practices, investment decisions, or fluctuations in short-term liabilities.
Overall, while the cash ratio of WD-40 Company has shown some ups and downs, it generally indicates that the company has maintained a satisfactory level of liquidity to cover its short-term obligations over the analyzed periods. However, management should continue to monitor and manage its cash position effectively to ensure liquidity and financial stability in the long term.
Peer comparison
Aug 31, 2024