ESCO Technologies Inc (ESE)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 41,866 | 97,724 | 56,232 | 52,560 | 61,808 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 198,600 | 164,645 | 146,341 | 144,082 | 174,427 |
| Total current liabilities | US$ in thousands | 314,651 | 318,129 | 274,995 | 255,484 | 251,635 |
| Quick ratio | 0.76 | 0.82 | 0.74 | 0.77 | 0.94 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($41,866K
+ $—K
+ $198,600K)
÷ $314,651K
= 0.76
The quick ratio, also known as the acid-test ratio, for Esco Technologies, Inc. has shown some fluctuation over the past five years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.
In 2023, the quick ratio stands at 1.26, a slight decrease from the previous year's 1.29. This indicates that Esco Technologies, Inc. may have slightly fewer liquid assets relative to its current liabilities compared to the previous year.
Looking back over the last five years, the company's quick ratio has displayed variability, with a high of 1.46 in 2019 and a low of 1.15 in 2021. This fluctuation suggests potential shifts in the company's ability to meet its short-term obligations using its readily available assets.
Overall, the quick ratio provides insight into Esco Technologies, Inc.'s short-term liquidity and ability to cover its immediate liabilities with its quick assets. It is important for stakeholders to monitor this metric to assess the company's short-term financial health and risk management.
Peer comparison
Sep 30, 2023