EPAM Systems Inc (EPAM)

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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	2,036,240	1,872,980	1,776,920	1,749,420	1,681,340	1,487,600	1,293,520	1,276,460	1,446,620	1,266,610	1,283,230	1,372,830	1,322,140	1,161,060	993,724	916,253	936,552	853,241	777,365	762,529
Short-term investments	US$ in thousands	60,739	60,431	71,376	60,373	60,336	60,216	60,098	—	0	0	0	0	60,007	60,089	60,025	—	9	—	—	—
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	482,061	479,650	451,354
Total current liabilities	US$ in thousands	644,932	613,578	584,065	682,858	747,483	727,957	684,703	683,252	763,420	632,547	522,948	463,761	465,950	414,831	365,580	389,321	386,948	311,470	272,614	282,566
Quick ratio		3.25	3.15	3.16	2.65	2.33	2.13	1.98	1.87	1.89	2.00	2.45	2.96	2.97	2.94	2.88	2.35	2.42	4.29	4.61	4.30

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 measures a company's ability to cover its short-term liabilities with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.

EPAM Systems Inc's quick ratio has shown a generally increasing trend over the past eight quarters. In Q4 2023, the quick ratio was 4.79, which was higher compared to the previous quarter at 4.77. This indicates that the company had $4.79 of liquid assets available to cover each dollar of its current liabilities in Q4 2023.

The quick ratio has consistently remained well above 1, which is a positive sign as it suggests that EPAM Systems Inc has ample liquid assets to meet its short-term obligations without relying heavily on inventory. Additionally, the quick ratio has been steadily improving since Q1 2022 when it was at 3.32, indicating an increasing ability to cover short-term liabilities with liquid assets over time.

Overall, EPAM Systems Inc's quick ratio reflects strong liquidity and financial health, with a consistent improvement in its ability to meet short-term obligations using liquid assets.