Carpenter Technology Corporation (CRS)

Quick ratio

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cash	US$ in thousands	199,100	53,500	15,700	18,100	44,500	22,300	20,000	52,600	154,200	393,900	96,900	213,200	287,400	244,200	271,400	218,900	193,100	93,000	29,900	24,600
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	1,200	500	200	100
Receivables	US$ in thousands	562,600	521,200	508,400	510,800	531,300	515,500	441,600	390,200	382,300	336,200	307,000	311,600	308,700	279,200	230,300	250,500	292,300	374,400	378,300	383,400
Total current liabilities	US$ in thousands	466,300	453,400	485,700	448,600	459,400	544,000	510,300	410,900	375,600	633,800	294,300	332,400	306,300	269,300	265,800	264,500	452,100	516,000	499,400	466,600
Quick ratio		1.63	1.27	1.08	1.18	1.25	0.99	0.90	1.08	1.43	1.15	1.37	1.58	1.95	1.94	1.89	1.77	1.08	0.91	0.82	0.87

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 some fluctuations over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

The quick ratio has been generally above 1, indicating that the company has had sufficient liquid assets to cover its current liabilities. A quick ratio above 1 is considered healthy as it suggests that the company can easily meet its short-term debt obligations without relying too heavily on inventory sales.

There are instances where the quick ratio dipped below 1, such as in the first quarter of 2023 and the fourth quarter of 2020, which suggests a potential liquidity risk during those periods. However, the ratio has generally improved since then, with some quarters showing significantly higher ratios above 1.5, indicating a stronger liquidity position.

Overall, while there have been some fluctuations in the quick ratio, Carpenter Technology Corporation has, in general, maintained a healthy liquidity position over the analyzed periods, with most quarters showing a quick ratio above 1.