Acuity Brands Inc (AYI)
Quick ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 845,800 | 397,900 | 223,200 | 491,300 | 560,700 |
| Short-term investments | US$ in thousands | -1,548,200 | — | — | — | — |
| Receivables | US$ in thousands | 563,000 | 555,300 | 665,900 | 571,800 | 500,300 |
| Total current liabilities | US$ in thousands | 687,900 | 595,400 | 733,600 | 692,200 | 617,600 |
| Quick ratio | -0.20 | 1.60 | 1.21 | 1.54 | 1.72 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($845,800K
+ $-1,548,200K
+ $563,000K)
÷ $687,900K
= -0.20
The quick ratio of Acuity Brands Inc has exhibited some variability over the past five years. In 2024, the quick ratio stands at -0.20, indicating that the company may not have sufficient liquid assets to cover its current liabilities. This negative quick ratio suggests potential liquidity challenges in the short term.
On the other hand, in 2023, the quick ratio was 1.60, showing a significant improvement from the previous year. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities, providing a positive signal of short-term liquidity strength.
In 2022, the quick ratio was 1.21, slightly lower than the previous year, but still above the 1 threshold, indicating satisfactory liquidity levels. In 2021 and 2020, the quick ratios were 1.54 and 1.72 respectively, showing consistent liquidity strength over those years.
Overall, the quick ratio trend of Acuity Brands Inc suggests some fluctuations in short-term liquidity management, with the company maintaining a healthy liquidity position in most years. However, the negative quick ratio in 2024 raises concerns about the company's ability to meet its short-term obligations with its current liquid assets. Further analysis of the company's current assets and liabilities is recommended to understand the reasons behind this decline in liquidity.
Peer comparison
Aug 31, 2024