Azenta Inc (AZTA)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 310,929 | 678,910 | 658,274 | 227,427 | 250,649 |
| Short-term investments | US$ in thousands | 210,677 | 455,346 | 911,764 | 81 | 67 |
| Receivables | US$ in thousands | 172,700 | 156,535 | 163,758 | 119,900 | 188,291 |
| Total current liabilities | US$ in thousands | 204,839 | 210,928 | 230,546 | 345,088 | 211,118 |
| Quick ratio | 3.39 | 6.12 | 7.52 | 1.01 | 2.08 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($310,929K
+ $210,677K
+ $172,700K)
÷ $204,839K
= 3.39
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio value of 1 or higher is generally considered healthy, indicating that the company has enough liquid assets to cover its current liabilities.
Looking at the quick ratio of Azenta Inc over the past five years, we observe a fluctuating trend. In Sep 30, 2024, the quick ratio stood at 3.39, a significant decrease from the high values seen in the previous two years. This indicates a potential liquidity concern compared to the previous year, as the company's short-term assets may not be as sufficient to cover its current liabilities as before.
In Sep 30, 2023, Azenta Inc had a quick ratio of 6.12, reflecting a very strong liquidity position, with more than enough liquid assets to cover its short-term obligations. This was a favorable sign, indicating a healthy financial position during that period.
In Sep 30, 2022, the quick ratio was even higher at 7.52, displaying an exceptionally strong liquidity position for the company. This high ratio suggests that Azenta Inc had a significant amount of highly liquid assets compared to its current liabilities, indicating a robust financial position.
However, in Sep 30, 2021, the quick ratio dropped to 1.01, just meeting the threshold of 1. While technically sufficient to cover short-term obligations, this ratio indicates a minimal buffer for unexpected financial challenges. It suggests that the company had just enough liquid assets to cover its current liabilities at that point in time.
Lastly, in Sep 30, 2020, Azenta Inc had a quick ratio of 2.08, indicating a healthier liquidity position compared to the following year but lower than the peak in 2022. This level suggests the company had a relatively strong ability to cover its immediate obligations with liquid assets during that period.
Overall, the analysis of Azenta Inc's quick ratio over the past five years shows varying levels of liquidity strength. While the company displayed exceptionally strong liquidity in some years, there were also instances where the quick ratio indicated a lower capacity to cover short-term liabilities. This trend suggests that Azenta Inc's liquidity management may have experienced fluctuations over the years, potentially impacting its ability to handle short-term financial obligations.
Peer comparison
Sep 30, 2024