Avnet Inc (AVT)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 310,941 | 288,230 | 153,693 | 199,691 | 477,038 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 4,391,190 | 4,763,790 | 4,301,000 | 3,576,130 | 3,632,190 |
| Total current liabilities | US$ in thousands | 4,465,270 | 4,249,380 | 4,251,650 | 3,055,240 | 2,280,370 |
| Quick ratio | 1.05 | 1.19 | 1.05 | 1.24 | 1.80 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($310,941K
+ $—K
+ $4,391,190K)
÷ $4,465,270K
= 1.05
The quick ratio for Avnet Inc has shown fluctuations over the past five years, ranging from 1.05 to 1.80. The quick ratio measures the company's ability to meet its short-term liabilities using its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term obligations.
In 2020, Avnet Inc had a robust quick ratio of 1.80, indicating a strong ability to meet short-term liabilities. However, this ratio decreased in subsequent years, with a significant drop to 1.05 in 2021, indicating a potential strain on liquidity.
In 2022, the quick ratio remained at 1.05, suggesting that Avnet Inc maintained a similar level of liquidity as the previous year. However, the ratio improved slightly to 1.19 in 2023, indicating a better ability to cover short-term obligations. In 2024, the quick ratio further improved to 1.24, indicating a healthier liquidity position compared to the previous year.
Overall, while there have been fluctuations in Avnet Inc's quick ratio over the years, the recent improvement in 2024 suggests a better ability to meet short-term obligations using liquid assets. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's short-term liquidity position and financial health.
Peer comparison
Jun 30, 2024