Box Inc (BOX)
Quick ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 383,742 | 428,465 | 416,274 | 595,082 | 195,586 |
| Short-term investments | US$ in thousands | 96,948 | 32,783 | 170,000 | — | 20,000 |
| Receivables | US$ in thousands | 281,487 | 264,515 | 256,312 | 228,309 | 209,434 |
| Total current liabilities | US$ in thousands | 679,280 | 715,827 | 718,975 | 612,839 | 577,434 |
| Quick ratio | 1.12 | 1.01 | 1.17 | 1.34 | 0.74 |
January 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($383,742K
+ $96,948K
+ $281,487K)
÷ $679,280K
= 1.12
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 of 1 or higher is generally considered healthy, as it indicates that a company has enough liquid assets to cover its current liabilities.
For Box Inc, the quick ratio has fluctuated over the past five years. In 2024, the quick ratio stands at 1.12, indicating that the company has $1.12 of liquid assets available for every $1 of current liabilities. This suggests that Box Inc has a relatively strong ability to meet its short-term obligations.
Comparing this to previous years, we see a decreasing trend from 2021 to 2022, where the quick ratio fell from 1.34 to 1.17. However, the ratio improved in 2023 to 1.01 before increasing further in 2024 to 1.12.
The quick ratio of 0.74 in 2020 was relatively low, indicating that Box Inc had less liquidity to cover its short-term obligations at that time. Overall, the recent increase to 1.12 in 2024 reflects a positive trend in the company's liquidity position compared to previous years. It is important for Box Inc to continue monitoring and managing its liquidity to ensure it can meet its financial obligations effectively.
Peer comparison
Jan 31, 2024