Adient PLC (ADNT)
Quick ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 945,000 | 890,000 | 905,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | 22,154 | — | — | — | — | 335,000 | 4,000 | 4,000 | 838,000 | — | 1,090,000 | 1,279,000 | 10,000 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,678,000 | 3,686,000 | 3,658,000 | 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 |
| Quick ratio | 0.26 | 0.24 | 0.25 | 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 | 0.26 |
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, also known as the acid-test ratio, is a liquidity ratio that 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 a company may have difficulty meeting its short-term liabilities.
Analyzing Adient PLC's quick ratio over the provided periods shows fluctuations. The quick ratio ranged from 0.23 to 0.74 during the period under review. The lowest quick ratio of 0.23 was reported in March 2023, indicating a potential liquidity concern, while the highest quick ratio of 0.74 was observed in December 2020, reflecting improved liquidity.
The trend in Adient PLC's quick ratio fluctuated over the periods, with some quarters showing decreases and others increases. However, it is important to note that in several instances, the quick ratio was below 1, suggesting potential challenges in meeting short-term obligations with readily available assets. Notably, the quick ratio showed a significant improvement in March 2022 and December 2020, indicating better liquidity positions in those periods.
Overall, the analysis of Adient PLC's quick ratio suggests fluctuations in liquidity over the periods, with a few instances of potential liquidity concerns. It is essential for stakeholders to monitor the company's liquidity position closely to ensure its ability to meet short-term obligations.
Peer comparison
Sep 30, 2024