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
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
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
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
Quick ratio		1.21	1.05	3.34	1.54	1.57	1.36	1.49	1.44	1.42	1.44

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.