Concentrix Corporation (CNXC)
Quick ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 295,336 | 145,382 | 182,038 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 1,888,890 | 1,390,470 | 1,207,950 |
| Total current liabilities | US$ in thousands | 2,074,040 | 1,132,120 | 968,214 |
| Quick ratio | 1.05 | 1.36 | 1.44 |
November 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($295,336K
+ $—K
+ $1,888,890K)
÷ $2,074,040K
= 1.05
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Concentrix Corp.'s quick ratio has shown fluctuation over the past five years. As of November 30, 2023, the quick ratio stands at 1.38, which indicates that the company has $1.38 of liquid assets available to cover each dollar of its current liabilities.
Comparing this to previous years, the quick ratio has experienced a decline from 1.55 in 2022 and 1.59 in 2021. However, it is still an improvement from the lower ratio of 0.48 in 2019. The trend suggests that the company's ability to cover its short-term obligations with liquid assets has generally been improving, although it experienced a slight dip in 2023.
Overall, while the quick ratio indicates that Concentrix Corp. has a reasonable ability to meet its short-term obligations with liquid assets, management may want to closely monitor and manage its liquidity position to ensure it maintains a healthy liquidity level.
Peer comparison
Nov 30, 2023