ESCO Technologies Inc (ESE)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 65,963 | 41,866 | 97,724 | 56,232 | 52,560 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 240,680 | 198,600 | 164,645 | 146,341 | 144,082 |
| Total current liabilities | US$ in thousands | 349,854 | 314,651 | 318,129 | 274,995 | 255,484 |
| Quick ratio | 0.88 | 0.76 | 0.82 | 0.74 | 0.77 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($65,963K
+ $—K
+ $240,680K)
÷ $349,854K
= 0.88
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.
Looking at ESCO Technologies Inc's quick ratio over the past five years, we observe a fluctuating trend. As of September 30, 2024, the quick ratio stood at 0.88, indicating that the company had $0.88 in liquid assets available to cover each $1 of current liabilities.
Comparing this to previous years, we see an improvement from the ratio of 0.76 in September 2023 and 0.74 in September 2021, suggesting an enhanced ability to meet short-term obligations over the recent period.
However, the quick ratio of 0.82 in September 2022 and 0.77 in September 2020 reflects slight dips in liquidity levels in those respective years.
Overall, the quick ratio for ESCO Technologies Inc demonstrates some variability, with recent improvements suggesting a stronger position in terms of short-term liquidity compared to earlier periods. It would be important to monitor this ratio over time to ensure the company's continued ability to cover its short-term obligations effectively.
Peer comparison
Sep 30, 2024