The Cooper Companies Inc. (COO)
Quick ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 120,800 | 138,200 | 95,900 | 115,900 | 89,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 609,700 | 557,800 | 515,300 | 435,400 | 435,300 |
| Total current liabilities | US$ in thousands | 969,000 | 1,280,200 | 732,100 | 1,004,400 | 1,110,600 |
| Quick ratio | 0.75 | 0.54 | 0.83 | 0.55 | 0.47 |
October 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($120,800K
+ $—K
+ $609,700K)
÷ $969,000K
= 0.75
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. It is calculated by dividing quick assets (cash, marketable securities, and accounts receivable) by current liabilities.
Cooper Companies, Inc.'s quick ratio has fluctuated over the past five years, ranging from 0.59 to 1.08. The quick ratio was 1.00 as of October 31, 2023, indicating that the company had $1.00 of quick assets available for every $1.00 of current liabilities. This implies a favorable ability to meet short-term obligations.
However, the quick ratio was lower in the prior year at 0.71, and also in 2020 at 0.70. A quick ratio below 1.00 may raise concerns about the company's short-term liquidity and ability to quickly cover its current liabilities.
Overall, Cooper Companies, Inc.'s quick ratio has shown some volatility, and it's important to assess the company's management of its quick assets and liabilities to ensure sustainable liquidity in the future.
Peer comparison
Oct 31, 2023