Adient PLC (ADNT)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 945,000 | 1,110,000 | 947,000 | 1,521,000 | 1,692,000 |
| Short-term investments | US$ in thousands | — | — | — | 335,000 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,678,000 | 3,738,000 | 3,501,000 | 3,511,000 | 3,819,000 |
| Quick ratio | 0.26 | 0.30 | 0.27 | 0.53 | 0.44 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($945,000K
+ $—K
+ $—K)
÷ $3,678,000K
= 0.26
The quick ratio of Adient PLC has demonstrated a fluctuating trend over the past five years, ranging from 0.26 to 0.53. The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current liquid assets alone.
In 2024, the quick ratio decreased to 0.26 from 0.30 in 2023, suggesting a potential decrease in the company's ability to cover its short-term obligations. This could be a cause for concern as it indicates a lower level of liquidity compared to the previous year. The declining quick ratio may indicate that Adient PLC is facing challenges in managing its short-term financial obligations efficiently.
However, it's important to note that the quick ratio is just one measure of liquidity and should be considered alongside other financial metrics to gain a comprehensive understanding of the company's financial health. Further analysis of Adient PLC's financial statements and industry benchmarks would provide more insight into the company's liquidity position.
Peer comparison
Sep 30, 2024