Embecta Corp (EMBC)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Cash	US$ in thousands	267,500	326,300	330,900
Short-term investments	US$ in thousands	—	200	—
Receivables	US$ in thousands	246,800	159,100	133,100
Total current liabilities	US$ in thousands	374,000	353,500	301,000
Quick ratio		1.38	1.37	1.54

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($267,500K + $—K + $246,800K) ÷ $374,000K
= 1.38

The quick ratio of Embecta Corp has remained relatively stable over the past three years. As of September 30, 2024, the quick ratio stands at 1.38, compared to 1.37 in 2023 and 1.54 in 2022. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1.0 indicates that the company has enough liquid assets to cover its short-term liabilities. Embecta Corp's quick ratio above 1.0 for all three years suggests that it has a strong ability to meet its current obligations without relying heavily on inventory. The slight fluctuations in the quick ratio over the years indicate a stable liquidity position for the company, providing a measure of financial stability in the short term.