Concentrix Corporation (CNXC)

Quick ratio

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Cash	US$ in thousands	240,571	295,336	145,382	182,038	152,656
Short-term investments	US$ in thousands	—	—	—	—	2,305,900
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,995,810	2,074,040	1,132,120	968,214	1,008,660
Quick ratio		0.12	0.14	0.13	0.19	2.44

November 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($240,571K + $—K + $—K) ÷ $1,995,810K
= 0.12

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, indicating that a company can cover its short-term liabilities without relying on inventory sales.

Concentrix Corporation's quick ratio has shown a significant decline over the years:
- As of November 30, 2020, the quick ratio was 2.44, indicating a strong ability to cover short-term obligations with liquid assets.
- However, by November 30, 2021, the quick ratio dropped to 0.19, suggesting a considerable decrease in liquidity and the company's ability to meet its short-term obligations.
- The decline continued in the following years, with the quick ratio falling to 0.13 as of November 30, 2022, 0.14 as of November 30, 2023, and 0.12 as of November 30, 2024.

This trend raises concerns about Concentrix Corporation's liquidity position and ability to manage short-term financial commitments. A quick ratio below 1 may indicate potential difficulties in paying off current liabilities, which could lead to liquidity problems and financial distress. It is important for the company to closely monitor and improve its liquidity management to ensure financial stability and meet its obligations in a timely manner.