Enerpac Tool Group Corp (EPAC)
Quick ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 167,094 | 154,415 | 120,699 | 140,352 | 152,170 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 104,335 | 97,649 | 106,747 | 103,233 | 84,170 |
| Total current liabilities | US$ in thousands | 129,393 | 148,120 | 153,188 | 134,764 | 105,522 |
| Quick ratio | 2.10 | 1.70 | 1.48 | 1.81 | 2.24 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($167,094K
+ $—K
+ $104,335K)
÷ $129,393K
= 2.10
The quick ratio of Enerpac Tool Group Corp has exhibited fluctuations over the past five years, ranging from a low of 1.48 in August 2022 to a high of 2.24 in August 2020. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
An increasing trend in the quick ratio indicates an improved liquidity position, as seen in the company's significant jump from 1.48 in 2022 to 2.24 in 2020. This suggests that Enerpac Tool Group Corp had a greater capacity to cover its short-term liabilities with its quick assets alone in 2020 compared to 2022.
However, the quick ratio decreased in the subsequent years, reaching 1.70 in 2023, 1.81 in 2021, and 2.10 in 2024. While the quick ratio remains above 1 in all years, indicating the company's ability to cover short-term obligations, the fluctuations may signify changes in the composition of current assets or current liabilities.
Overall, a quick ratio above 1 signifies that Enerpac Tool Group Corp is in a relatively healthy financial position with sufficient quick assets to cover short-term obligations. However, investors and analysts need to consider the specific industry norms and the company's operational requirements to assess the adequacy of liquidity levels.
Peer comparison
Aug 31, 2024