Adient PLC (ADNT)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,110,000 | 947,000 | 1,521,000 | 1,692,000 | 924,000 |
| Short-term investments | US$ in thousands | — | — | 335,000 | — | 12,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,738,000 | 3,501,000 | 3,511,000 | 3,819,000 | 3,835,000 |
| Quick ratio | 0.30 | 0.27 | 0.53 | 0.44 | 0.24 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,110,000K
+ $—K
+ $—K)
÷ $3,738,000K
= 0.30
The quick ratio, which measures a company's ability to meet its short-term liabilities with its most liquid assets, reveals fluctuations in Adient plc's liquidity position over the past five years. The quick ratio has shown a mixed trend, declining from 1.16 in 2021 to 0.93 in 2023, with intermittent fluctuations in between. This indicates a potential decrease in the company's ability to cover its current liabilities with its most liquid assets. However, the ratio has remained above 1 in most years, suggesting that Adient plc has generally maintained an adequate level of liquidity to meet its short-term obligations. Nonetheless, further assessment of the company's working capital management and cash flow position is recommended to gain a comprehensive understanding of its liquidity health.
Peer comparison
Sep 30, 2023