ExlService Holdings Inc (EXLS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	136,953	118,669	135,337	218,530	119,165
Short-term investments	US$ in thousands	153,881	179,027	179,430	184,286	202,238
Receivables	US$ in thousands	308,108	259,222	195,124	211,799	245,784
Total current liabilities	US$ in thousands	326,403	277,946	495,686	221,078	229,349
Quick ratio		1.83	2.00	1.03	2.78	2.47

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($136,953K + $153,881K + $308,108K) ÷ $326,403K
= 1.83

The quick ratio of ExlService Holdings Inc has shown some fluctuations over the past five years. In 2023, the quick ratio stands at 2.07, indicating that the company has $2.07 in easily liquidated assets for every $1 of current liabilities. This signifies a slight decrease from the previous year when the quick ratio was 2.19.

In 2021, the quick ratio dropped significantly to 1.15, suggesting a potential liquidity concern as the company had only $1.15 in liquid assets to cover every $1 of current liabilities. However, this improved in 2022 and further increased in 2023.

Comparing the quick ratio to 2020 and 2019, where it was 2.73 and 2.34 respectively, we see that the company's liquidity position has fluctuated over the years but has generally remained strong. It is important to note that a quick ratio above 1 typically indicates that a company has an adequate level of liquid assets to cover its short-term obligations. The recent decrease in the quick ratio should be monitored to ensure the company's liquidity remains healthy.