Box Inc (BOX)

Quick ratio

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cash	US$ in thousands	383,742	377,911	395,965	481,435	428,465	358,060	348,783	391,377	416,274	568,265	779,416	561,459	595,082	275,400	271,874	267,973	195,586	200,890	201,489	231,436
Short-term investments	US$ in thousands	96,948	61,795	49,438	35,579	32,783	44,567	44,745	127,889	170,000	140,000	50,000	50,000	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	281,487	166,875	165,429	132,653	264,515	176,593	166,552	117,146	256,312	154,624	134,386	112,253	228,309	115,664	123,041	99,067	209,434	108,393	117,903	93,655
Total current liabilities	US$ in thousands	679,280	570,627	593,452	620,699	715,827	597,396	621,600	612,711	718,975	587,788	577,929	552,705	612,839	496,510	514,638	511,200	577,434	467,506	458,023	444,730
Quick ratio		1.12	1.06	1.03	1.05	1.01	0.97	0.90	1.04	1.17	1.47	1.67	1.31	1.34	0.79	0.77	0.72	0.70	0.66	0.70	0.73

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 pay its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is typically considered healthy as it indicates that the company has enough liquid assets to cover its current liabilities.

Box Inc's quick ratio has fluctuated over the past several quarters, ranging from 0.66 to 1.67. The trend shows some variability, but generally, the quick ratio has been above 1, indicating that the company has had sufficient liquid assets to cover its short-term obligations.

The quick ratio was strongest in the third quarter of fiscal year 2021, at 1.67, which suggests a very strong ability to meet short-term obligations without relying on inventory. However, there was a notable decrease in the quick ratio in subsequent quarters, dipping to 0.70 in the first quarter of fiscal year 2020, before gradually recovering.

Overall, while fluctuations in the quick ratio are evident in Box Inc's financial performance, the company has consistently maintained a quick ratio above 1 in recent periods, indicating a generally healthy liquidity position to meet short-term obligations. Analysts may want to further investigate the reasons behind the fluctuations to assess the company's liquidity management and evaluate its ability to weather potential short-term financial challenges.