WD-40 Company (WDFC)
Quick ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 46,699 | 48,143 | 37,843 | 85,961 | 56,462 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 117,493 | 98,039 | 89,930 | 89,558 | 80,672 |
| Total current liabilities | US$ in thousands | 103,500 | 88,842 | 110,820 | 85,936 | 60,116 |
| Quick ratio | 1.59 | 1.65 | 1.15 | 2.04 | 2.28 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($46,699K
+ $—K
+ $117,493K)
÷ $103,500K
= 1.59
The quick ratio of WD-40 Company has shown some fluctuation over the past five years. It decreased from 2.28 in 2020 to 2.04 in 2021, indicating a slight decrease in the company's ability to meet its short-term obligations with its most liquid assets. Subsequently, the ratio further declined to 1.15 in 2022, falling below the ideal quick ratio of 1, indicating a potential liquidity concern. However, there was a significant improvement in 2023 when the quick ratio increased to 1.65, suggesting a stronger ability to cover short-term liabilities with quick assets. The ratio continued to improve in 2024, reaching 1.59.
Overall, the company's quick ratio has displayed some volatility, with significant fluctuations year over year. It is important for stakeholders to closely monitor this ratio to assess the company's liquidity position and its ability to meet its short-term obligations effectively.
Peer comparison
Aug 31, 2024