EPAM Systems Inc (EPAM)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	2,036,240	1,681,340	1,446,620	1,322,140	936,552
Short-term investments	US$ in thousands	60,739	60,336	0	60,007	9
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	644,932	747,483	763,420	465,950	386,948
Quick ratio		3.25	2.33	1.89	2.97	2.42

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,036,240K + $60,739K + $—K) ÷ $644,932K
= 3.25

The quick ratio of EPAM Systems Inc has shown a generally favorable trend over the past five years, indicating the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio has improved from 3.81 in 2019 to 4.79 in 2023, demonstrating a consistent increase in liquidity.

A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities, and EPAM Systems Inc has consistently maintained a quick ratio well above 1 in each of the five years presented. This suggests a strong financial position and the ability to easily cover its short-term obligations without relying heavily on inventory.

The significant increase in the quick ratio from 2022 to 2023 from 3.69 to 4.79 is particularly noteworthy as it demonstrates a substantial enhancement in the company's liquidity position over the past year. This may be attributed to effective management of current assets and liabilities or improved cash flow management strategies. Overall, the consistent improvement in EPAM Systems Inc's quick ratio reflects prudent financial management and a solid liquidity position.