Enerpac Tool Group Corp (EPAC)
Quick ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 154,415 | 120,699 | 140,352 | 152,170 | 211,151 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 97,649 | 106,747 | 103,233 | 84,170 | 125,883 |
| Total current liabilities | US$ in thousands | 148,120 | 153,188 | 134,764 | 105,522 | 300,401 |
| Quick ratio | 1.70 | 1.48 | 1.81 | 2.24 | 1.12 |
August 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($154,415K
+ $—K
+ $97,649K)
÷ $148,120K
= 1.70
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Enerpac Tool Group Corp's quick ratio has experienced fluctuations over the past five years, indicating changes in its short-term liquidity position.
In 2023, the quick ratio stands at 1.90, suggesting that the company has $1.90 in highly liquid assets available to cover each dollar of its current liabilities. Compared to the previous year, the quick ratio has improved, indicating a stronger ability to meet short-term obligations.
In 2022, the quick ratio was 1.69, demonstrating a slight decline from the prior year. Although the company's liquid assets were still sufficient to cover its short-term liabilities, the decrease in the ratio may have indicated a potential liquidity challenge.
The quick ratio was at its highest in 2020, with a ratio of 2.58, indicating a strong ability to meet short-term obligations with highly liquid assets. This healthy liquidity position may have been indicative of effective cash management and efficient use of current assets.
In contrast, in 2019, the quick ratio was 1.22, signaling a lower level of liquidity compared to subsequent years. This could have raised concerns about the company's ability to meet short-term obligations using its readily available assets.
Overall, Enerpac Tool Group Corp's quick ratio has fluctuated over the past five years, reflecting varying levels of short-term liquidity. Analysts and stakeholders may need to closely monitor these changes to assess the company's ability to meet its immediate financial commitments.
Peer comparison
Aug 31, 2023