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.


Peer comparison

Dec 31, 2023