Ethan Allen Interiors Inc (ETD)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 69,710 | 62,130 | 109,919 | 104,596 | 72,276 |
| Short-term investments | US$ in thousands | 91,319 | 110,577 | 11,199 | 0 | — |
| Receivables | US$ in thousands | 6,766 | 11,577 | 17,019 | 9,026 | 8,092 |
| Total current liabilities | US$ in thousands | 153,696 | 163,097 | 215,643 | 223,902 | 138,978 |
| Quick ratio | 1.09 | 1.13 | 0.64 | 0.51 | 0.58 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($69,710K
+ $91,319K
+ $6,766K)
÷ $153,696K
= 1.09
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. A higher quick ratio indicates a stronger liquidity position.
In the case of Ethan Allen Interiors Inc, the quick ratio has fluctuated over the past five years. As of June 30, 2024, the quick ratio stands at 1.09, indicating that the company has $1.09 in easily convertible assets for every $1 of current liabilities. This ratio has slightly decreased from the previous year but remains above 1, suggesting that the company has an adequate level of liquid assets to cover its short-term obligations.
Looking back, the quick ratio has shown variability in recent years. In 2022, the ratio was relatively low at 0.64, indicating potential liquidity challenges. However, there has been an improvement since then, with the ratio increasing to 1.13 in 2023 and further to 1.09 in 2024.
Overall, the trend in Ethan Allen Interiors Inc's quick ratio indicates a positive development in liquidity management. The company has been able to enhance its ability to meet short-term obligations using its liquid assets, which is a favorable sign for its financial health and operational stability.
Peer comparison
Jun 30, 2024