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. Olaplex Holdings's current ratio for the quarter that ended in Dec. 2023 was 10.92.
Olaplex Holdings has a current ratio of 10.92. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Olaplex Holdings's Current Ratio or its related term are showing as below:
OLPX'
s Current Ratio Range Over the Past 10 Years
Min: 1.31 Med: 4.6 Max: 10.92
Current: 10.92
During the past 5 years, Olaplex Holdings's highest Current Ratio was 10.92. The lowest was 1.31. And the median was 4.60.
OLPX's Current Ratio is ranked better than 97.14% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 1.59
vs OLPX: 10.92
Olaplex Holdings Current Ratio Historical Data
The historical data trend for Olaplex 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.
Olaplex Holdings Annual Data
Trend
Dec19
Dec20
Dec21
Dec22
Dec23
Current Ratio
2.87
1.31
4.60
9.48
10.92
Olaplex Holdings Quarterly Data
Dec19
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Current Ratio
9.48
9.68
9.32
10.69
10.92
Competitive Comparison
For the Specialty Retail subindustry, Olaplex 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.
Olaplex Holdings Current Ratio Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Olaplex Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Olaplex Holdings's Current Ratio falls into.
Olaplex 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.
Olaplex Holdings's Current Ratio for the fiscal year that ended in Dec. 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.
Olaplex Holdings (NAS:OLPX) 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.
Olaplex Holdings Current Ratio Related Terms
Thank you for viewing the detailed overview of Olaplex Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Olaplex Holdings (Olaplex Holdings) Business Description
Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies consumers' most relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through a global omnichannel platform serving the professional, specialty retail, and DTC channels. The company derives its revenue through the sale of its specialty hair care products.
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