CorVel Corp (CRVL)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 105,563 | 71,329 | 97,504 | 139,716 | 83,223 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 139,525 | 107,673 | 109,893 | 81,935 | 85,459 |
| Total current liabilities | US$ in thousands | 184,499 | 167,887 | 171,370 | 162,460 | 133,689 |
| Quick ratio | 1.33 | 1.07 | 1.21 | 1.36 | 1.26 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($105,563K
+ $—K
+ $139,525K)
÷ $184,499K
= 1.33
The quick ratio of CorVel Corp has fluctuated over the past five years, ranging from 1.07 to 1.36. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities.
In the latest fiscal year ending March 31, 2024, the quick ratio improved to 1.33 from 1.07 in the previous year. This indicates that CorVel Corp strengthened its ability to meet its short-term obligations using its readily available assets. A quick ratio of 1.33 suggests that the company had $1.33 in liquid assets available for every $1 of short-term liabilities, reflecting a positive liquidity position.
The trend over the past five years shows some variability in the company's liquidity position, with fluctuations in the quick ratio. However, the ratios have generally remained above 1, signaling that CorVel Corp has maintained a relatively healthy liquidity position and has been able to meet its short-term obligations comfortably. Investors and creditors often view a quick ratio above 1 as a positive indicator of financial health and liquidity management.