Concentrix Corporation (CNXC)
Quick ratio
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 234,794 | 295,336 | 2,112,790 | 152,896 | 178,386 | 145,382 | 176,082 | 163,364 | 142,157 | 182,038 | 154,193 | 131,249 | 117,576 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,927,640 | 1,888,890 | 1,379,440 | 1,394,010 | 1,381,610 | 1,390,470 | 1,355,060 | 1,311,720 | 1,324,740 | 1,207,950 | 1,131,420 | 1,089,390 | 1,129,010 |
| Total current liabilities | US$ in thousands | 1,782,770 | 2,074,040 | 1,045,570 | 1,007,480 | 993,966 | 1,132,120 | 1,028,210 | 1,023,020 | 1,036,280 | 968,214 | 888,792 | 889,613 | 877,576 |
| Quick ratio | 1.21 | 1.05 | 3.34 | 1.54 | 1.57 | 1.36 | 1.49 | 1.44 | 1.42 | 1.44 | 1.45 | 1.37 | 1.42 |
February 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($234,794K
+ $—K
+ $1,927,640K)
÷ $1,782,770K
= 1.21
The quick ratio of Concentrix Corporation has fluctuated over the past 13 quarters, with values ranging from 1.05 to 3.34. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
Looking at the trend, the quick ratio was highest in the third quarter of the 2023 financial year at 3.34, suggesting a very strong liquidity position at that time. However, this was followed by a significant decline in subsequent quarters, with the quick ratio dropping to as low as 1.05 in the second quarter of the 2024 financial year. This dip may indicate potential challenges in meeting short-term obligations during that period.
Overall, the company's quick ratio has generally remained above 1 in most quarters, indicating a relatively healthy liquidity position. Management should continue to monitor and manage the company's current assets and liabilities to ensure the ability to meet short-term obligations effectively.
Peer comparison
Feb 29, 2024