Carpenter Technology Corporation (CRS)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	199,100	44,500	154,200	287,400	193,100
Short-term investments	US$ in thousands	—	—	—	—	1,200
Receivables	US$ in thousands	562,600	531,300	382,300	308,700	292,300
Total current liabilities	US$ in thousands	466,300	459,400	375,600	306,300	452,100
Quick ratio		1.63	1.25	1.43	1.95	1.08

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($199,100K + $—K + $562,600K) ÷ $466,300K
= 1.63

The quick ratio of Carpenter Technology Corporation has shown fluctuating trends over the past five years. The ratio stood at 1.08 in June 2020, indicating the company had $1.08 of liquid assets available to cover each dollar of its current liabilities.

There was a significant improvement in the quick ratio in June 2021, reaching 1.95, which suggests stronger liquidity position and ability to meet short-term obligations. However, in the following years, the ratio decreased to 1.43 in June 2022 and further to 1.25 in June 2023, indicating a potential decrease in liquidity compared to the previous year.

As of June 30, 2024, the quick ratio increased to 1.63, suggesting an improvement in Carpenter Technology Corporation's ability to meet its short-term obligations with its liquid assets. Overall, the trend in the quick ratio indicates some volatility in the company's liquidity position over the years, with fluctuations that may warrant further investigation into the efficiency of its current asset management.