WD-40 Company (WDFC)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 117,493 | 116,434 | 104,794 | 95,118 | 98,039 | 100,556 | 100,430 | 87,285 | 89,930 | 92,621 | 103,582 | 95,542 | 89,558 | 104,911 | 93,577 | 91,061 | 80,672 | 76,390 | 75,827 | 70,058 |
| 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 |
| Quick ratio | 1.59 | 1.54 | 1.45 | 1.47 | 1.65 | 1.46 | 1.19 | 1.09 | 1.15 | 1.39 | 1.76 | 1.91 | 2.04 | 2.34 | 2.31 | 2.35 | 2.28 | 1.40 | 1.11 | 1.22 |
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 fluctuations over the past few years. It indicates the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio has generally been above 1, which suggests that the company has sufficient liquid assets to cover its current liabilities. A quick ratio of 1 or higher is considered healthy as it indicates that the company can pay off its short-term liabilities without relying heavily on inventory.
The quick ratio experienced a peak at 2.35 in February 2020, reflecting a strong liquidity position at that time. However, there have been periods, such as in May 2021 and November 2022, where the quick ratio dropped below 1.5, indicating a potential strain on the company's ability to meet short-term obligations with its liquid assets during those periods.
Overall, the trend in the quick ratio of WD-40 Company shows some volatility but generally demonstrates a sound liquidity position, with the company being able to efficiently cover its short-term liabilities with its liquid assets.
Peer comparison
Aug 31, 2024