The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Post Holdings's current ratio for the quarter that ended in Dec. 2023 was 1.99.
Post Holdings has a current ratio of 1.99. It generally indicates good short-term financial strength.
The historical rank and industry rank for Post Holdings's Current Ratio or its related term are showing as below:
POST'
s Current Ratio Range Over the Past 10 Years
Min: 1.56 Med: 2.65 Max: 6.43
Current: 1.99
During the past 13 years, Post Holdings's highest Current Ratio was 6.43. The lowest was 1.56. And the median was 2.65.
POST's Current Ratio is ranked better than 60.54% of 1903
companies
in the Consumer Packaged Goods industry
Industry Median: 1.65
vs POST: 1.99
Post Holdings Current Ratio Historical Data
The historical data trend for Post Holdings's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Post Holdings Annual Data
Trend
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Sep21
Sep22
Sep23
Current Ratio
2.65
2.35
1.99
2.70
1.84
Post Holdings Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Current Ratio
2.79
2.73
2.06
1.84
1.99
Competitive Comparison
For the Packaged Foods subindustry, Post Holdings's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Post Holdings Current Ratio Distribution
For the Consumer Packaged Goods industry and Consumer Defensive sector, Post Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Post Holdings's Current Ratio falls into.
Post Holdings Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Post Holdings's Current Ratio for the fiscal year that ended in Sep. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Post Holdings (NYSE:POST) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Post Holdings Current Ratio Related Terms
Thank you for viewing the detailed overview of Post Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Post Holdings (Post Holdings) Business Description
Post Holdings Inc is an consumer packaged goods holding company. It operates in Post Consumer Brands which Includes branded and private label ready-to-eat cereals, Weetabix it Includes the businesses of Weetabix Limited, which Post acquired in July 2017 and which produces and distributes branded and private label RTE cereal, hot cereals and other cereal-based food products, Foodservice which Includes primarily egg and potato products in the foodservice and food ingredient channels from the businesses of MFI Holding Corporation, lastly Refrigerated Retail segment Provides refrigerated retail products, inclusive of side dishes, eggs and egg products, sausage, cheese and other dairy and refrigerated products.
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