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