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 | 109,000 | 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 | 1.28 | 0.90 | 1.45 | 1.65 | 2.01 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($289,000K
+ $109,000K
+ $921,000K)
÷ $1,031,000K
= 1.28
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