Embecta Corp (EMBC)

Quick ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Cash	US$ in thousands	298,700	326,500	317,400	346,400	385,200	330,900	292,300	264,300	0
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	206,400	159,100	190,100	152,700	143,300	133,100	119,200	15,200	118,300
Total current liabilities	US$ in thousands	326,600	353,500	385,800	357,700	370,300	301,000	228,500	168,900	159,100
Quick ratio		1.55	1.37	1.32	1.40	1.43	1.54	1.80	1.65	0.74

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($298,700K + $—K + $206,400K) ÷ $326,600K
= 1.55

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its short-term liabilities.

Looking at the quick ratio of Embecta Corp over the past few quarters, we can see some fluctuation. In the most recent quarter ending on December 31, 2023, the quick ratio was 1.55, which indicates a healthy position in terms of liquidity. This suggests that Embecta Corp had $1.55 in liquid assets available to cover each dollar of its current liabilities.

While the quick ratio has been relatively stable above 1 in the past few quarters, it is worth noting the significant improvement from a low of 0.74 in December 2021 to the current level of 1.55. This demonstrates an enhanced ability to meet short-term obligations in a more secure manner.

Overall, the trend in Embecta Corp's quick ratio shows a positive trajectory towards stronger liquidity positions. However, it would be important to continue monitoring this ratio to ensure consistent and satisfactory levels of liquidity to meet short-term obligations.