Adient PLC (ADNT)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 990,000 | 1,110,000 | 908,000 | 826,000 | 901,000 | 947,000 | 892,000 | 1,118,000 | 2,080,000 | 1,521,000 | 1,000,000 | 984,000 | 1,820,000 | 1,692,000 | 1,032,000 | 1,640,000 | 965,000 | 924,000 | 1,025,000 | 491,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 22,154 | — | — | — | — | 335,000 | — | — | 838,000 | — | 1,090,000 | 1,279,000 | 1,321,000 | 1,399,000 | 1,407,000 | 1,544,000 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,548,000 | 3,738,000 | 3,720,000 | 3,671,000 | 3,418,000 | 3,501,000 | 3,387,000 | 3,658,000 | 3,742,000 | 3,511,000 | 3,631,000 | 3,661,000 | 3,584,000 | 3,819,000 | 3,083,000 | 4,223,000 | 3,683,000 | 3,835,000 | 3,963,000 | 4,004,000 |
| Quick ratio | 0.28 | 0.30 | 0.24 | 0.23 | 0.27 | 0.27 | 0.26 | 0.31 | 0.56 | 0.53 | 0.28 | 0.27 | 0.74 | 0.44 | 0.69 | 0.69 | 0.62 | 0.61 | 0.61 | 0.51 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($990,000K
+ $—K
+ $—K)
÷ $3,548,000K
= 0.28
The quick ratio of Adient plc has been relatively stable over the past eight quarters, ranging from 0.91 to 0.95. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty covering its short-term liabilities with its current assets.
The consistent quick ratio around the 0.91 to 0.95 range suggests that Adient plc has been able to maintain a reasonable level of liquidity to meet its short-term financial obligations. However, it is important to note that a quick ratio close to 1 may also indicate a relatively tight liquidity position, as it means the company has just enough liquid assets to cover its short-term liabilities.
Overall, while the stability of the quick ratio is a positive sign of Adient plc's liquidity management, further analysis of the company's overall financial health and cash flow management is recommended to gain a more comprehensive understanding of its financial position.
Peer comparison
Dec 31, 2023