DXC Technology Co (DXC)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,224,000 | 1,858,000 | 2,672,000 | 2,968,000 | 3,679,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 3,253,000 | 3,441,000 | 3,854,000 | 4,156,000 | 4,392,000 |
| Total current liabilities | US$ in thousands | 4,394,000 | 5,187,000 | 6,853,000 | 8,150,000 | 7,895,000 |
| Quick ratio | 1.02 | 1.02 | 0.95 | 0.87 | 1.02 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,224,000K
+ $—K
+ $3,253,000K)
÷ $4,394,000K
= 1.02
The quick ratio of DXC Technology Co has shown relatively stable performance over the past five years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
In 2024 and 2023, the quick ratio stood at 1.02, indicating that the company had $1.02 in liquid assets for every dollar of current liabilities. This suggests a healthy liquidity position, as the company has sufficient quick assets to cover its short-term obligations.
In 2022, the quick ratio decreased slightly to 0.95, which may raise some concerns about the company's liquidity position. However, the ratio improved in the following years, reaching 0.87 in 2021 and returning to 1.02 in 2020.
Overall, the quick ratio trend for DXC Technology Co reflects a generally stable liquidity position, with occasional fluctuations. It is important for investors and stakeholders to monitor the company's ability to cover its short-term liabilities with liquid assets to ensure financial stability and operational continuity.
Peer comparison
Mar 31, 2024