Ethan Allen Interiors Inc (ETD)
Quick ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 76,178 | 69,710 | 62,130 | 109,919 | 104,596 |
| Short-term investments | US$ in thousands | 59,955 | 91,319 | 110,577 | 11,199 | 11,199 |
| Receivables | US$ in thousands | 6,066 | 6,766 | 11,577 | 17,019 | 9,026 |
| Total current liabilities | US$ in thousands | 152,851 | 153,696 | 163,097 | 215,643 | 223,902 |
| Quick ratio | 0.93 | 1.09 | 1.13 | 0.64 | 0.56 |
June 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($76,178K
+ $59,955K
+ $6,066K)
÷ $152,851K
= 0.93
The quick ratio of Ethan Allen Interiors Inc. has demonstrated notable fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the quick ratio was 0.56, indicating that the company's most liquid assets covered approximately 56% of its current liabilities—a liquidity position indicating potential challenges in meeting short-term obligations solely through liquid assets. The ratio experienced an incremental increase, reaching 0.64 by June 30, 2022, suggesting some improvement in liquidity health, although it remained below the threshold of 1.0, which generally reflects a more comfortable liquidity cushion.
By June 30, 2023, the quick ratio increased substantially to 1.13. This rise signifies that Ethan Allen Interiors Inc. had consolidated a sufficient level of liquid assets to fully cover its immediate liabilities, positioning the company with a more robust short-term liquidity position. The ratio slightly declined to 1.09 by June 30, 2024, still remaining above the critical threshold of 1.0, indicating continued liquidity strength but signaling a marginal reduction in liquid asset coverage compared to the previous year.
As of June 30, 2025, the quick ratio declined further to 0.93. Although still close to equality between liquid assets and current liabilities, this decrease reflects a slight weakening in the company's short-term liquidity position relative to the previous year. The trend from 2023 onward highlights a movement toward a more conservative liquidity stance, with the ratio approaching the crossing point below 1.0. Overall, the company's quick ratio movement suggests improvements in liquidity up to mid-2023, followed by a modest decline in subsequent years, underscoring the importance of continued liquidity management to sustain operational flexibility.
Peer comparison
Jun 30, 2025