Avantor Inc (AVTR)

Quick ratio

		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	Sep 30, 2019
Cash	US$ in thousands	272,600	234,900	262,900	236,900	236,400	294,600	372,900	265,600	237,500	283,600	301,700	1,426,100	223,000	172,500	286,600	370,500	415,300	346,300	186,700	173,900
Short-term investments	US$ in thousands	14,900	18,000	16,600	28,500	28,800	19,700	26,200	25,600	5,100	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	1,129,000	1,129,700	1,150,200	1,150,300	1,216,000	1,277,200	1,218,400	1,231,400	1,269,600	1,345,400	1,222,100	1,184,700	1,268,800	1,201,500	1,113,300	1,036,900	983,700	1,041,100	988,800	983,300
Total current liabilities	US$ in thousands	1,464,600	1,441,900	1,480,300	1,488,100	1,550,100	1,669,500	1,658,800	1,551,900	1,571,300	1,447,100	1,450,800	1,320,100	1,377,700	1,240,700	1,242,700	1,136,000	1,053,700	1,126,600	1,074,500	1,078,700
Quick ratio		0.97	0.96	0.97	0.95	0.96	0.95	0.98	0.98	0.96	1.13	1.05	1.98	1.08	1.11	1.13	1.24	1.33	1.23	1.09	1.07

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($272,600K + $14,900K + $1,129,000K) ÷ $1,464,600K
= 0.97

The quick ratio of Avantor Inc over the past 20 quarters has shown some fluctuations but generally remains above 1. This indicates that the company has a strong ability to meet its short-term obligations using its most liquid assets, such as cash, marketable securities, and accounts receivable.

The quick ratio peaked at 1.98 in the first quarter of 2022, suggesting the company had a particularly strong liquidity position at that time. However, the ratio dipped to 0.95 in the first and third quarters of 2023, indicating potential challenges in meeting short-term obligations during those periods.

Overall, the trend in Avantor Inc's quick ratio indicates a generally healthy liquidity position, with some variability over time. It is important for the company to continue monitoring and managing its liquidity to ensure it can meet its obligations in a timely manner.