Amentum Holdings Inc. (AMTM)
Quick ratio
| Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 452,000 | 156,000 | 207,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 2,401,000 | — | — |
| Total current liabilities | US$ in thousands | 1,965,000 | 664,000 | 713,000 |
| Quick ratio | 1.45 | 0.23 | 0.29 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($452,000K
+ $—K
+ $2,401,000K)
÷ $1,965,000K
= 1.45
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 below 1 indicates that a company may have difficulty meeting its short-term liabilities.
For Amentum Holdings Inc., the quick ratio declined from 0.29 as of December 31, 2022, to 0.23 as of December 31, 2023, suggesting a deterioration in the company's short-term liquidity position during that period. However, as of September 30, 2024, the quick ratio improved significantly to 1.45, indicating a healthier liquidity position.
It is important for investors and creditors to closely monitor Amentum Holdings Inc.'s quick ratio to assess the company's ability to cover its short-term obligations without relying too heavily on inventory or other less liquid assets.
Peer comparison
Sep 30, 2024