Catalent Inc (CTLT)

Quick ratio

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Cash US$ in thousands 289,000 280,000 449,000 896,000 953,000
Short-term investments US$ in thousands 89,000 89,000 71,000 200
Receivables US$ in thousands 921,000 1,002,000 1,051,000 1,012,000 838,100
Total current liabilities US$ in thousands 1,031,000 1,530,000 1,098,000 1,196,000 893,000
Quick ratio 1.17 0.90 1.45 1.65 2.01

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($289,000K + $—K + $921,000K) ÷ $1,031,000K
= 1.17

The quick ratio for Catalent Inc has exhibited a declining trend over the past five years. As of June 30, 2024, the quick ratio stands at 1.17, indicating that the company has $1.17 in liquid assets available to cover each dollar of current liabilities.

Comparing this to the quick ratios of previous years, we see a decrease from 2.01 in 2020 to 1.17 in 2024. This suggests a potential deterioration in the company's ability to meet its short-term obligations using its most liquid assets.

Although a quick ratio above 1.0 generally indicates that a company can meet its current liabilities with its most liquid assets, a declining trend may signify a weakening liquidity position and may raise concerns about the company's ability to manage short-term financial obligations effectively. Further analysis of the company's cash and equivalents, accounts receivable, and current liabilities is recommended to gain a more comprehensive understanding of its liquidity position.


Peer comparison

Jun 30, 2024