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.
Peer comparison
Dec 31, 2023