Carpenter Technology Corporation (CRS)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	US$ in thousands	315,500	199,100	44,500	154,200	287,400
Short-term investments	US$ in thousands	—	15,200	—	—	—
Receivables	US$ in thousands	575,500	562,600	531,300	382,300	308,700
Total current liabilities	US$ in thousands	483,700	466,300	459,400	375,600	306,300
Quick ratio		1.84	1.67	1.25	1.43	1.95

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($315,500K + $—K + $575,500K) ÷ $483,700K
= 1.84

The quick ratio of Carpenter Technology Corporation has exhibited notable fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the quick ratio stood at 1.95, indicating that the company had a strong liquidity position, with sufficient liquid assets to cover its current liabilities nearly twice over. By June 30, 2022, this ratio declined to 1.43, reflecting a decrease in liquidity, although it remained comfortably above 1, suggesting the company's short-term liquidity was still adequate. The ratio further decreased to 1.25 by June 30, 2023, indicating continued but moderate erosion in liquidity levels.

Subsequently, the quick ratio experienced a resurgence to 1.67 on June 30, 2024, signaling an improvement in the company's ability to meet its short-term obligations without relying on inventory, potentially driven by better management of liquid assets or a reduction in current liabilities. The positive movement persisted into June 30, 2025, with the ratio reaching 1.84, thereby surpassing the earlier peak from 2021 and indicating an enhanced liquidity position relative to prior years.

Overall, the trend underscores periods of decline followed by recovery, with the most recent value exceeding earlier figures, suggesting an overall improvement in the company's quick liquidity position by 2025. This trajectory reflects efforts or external factors influencing the company's current asset management, emphasizing a more robust short-term liquidity stance in the latest period.