ExlService Holdings Inc (EXLS)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash	US$ in thousands	153,355	150,102	115,303	108,565	136,953	122,655	93,960	87,298	118,669	89,262	106,304	106,540	135,337	114,581	150,211	177,121	218,530	206,423	163,619	224,874
Short-term investments	US$ in thousands	187,223	175,648	160,833	137,585	153,881	151,581	156,098	116,479	179,027	172,889	158,941	162,694	179,430	169,739	144,533	198,721	184,286	156,175	171,962	142,539
Receivables	US$ in thousands	304,322	340,904	327,613	335,523	308,108	303,378	288,305	290,512	259,222	275,951	238,098	239,944	195,124	192,791	182,564	159,506	211,799	155,132	157,849	187,137
Total current liabilities	US$ in thousands	290,116	254,185	286,862	261,441	326,403	306,146	259,063	280,904	277,946	286,968	266,014	222,121	495,686	222,926	207,109	197,720	221,078	184,899	184,163	258,364
Quick ratio		2.22	2.62	2.10	2.22	1.83	1.89	2.08	1.76	2.00	1.88	1.89	2.29	1.03	2.14	2.30	2.71	2.78	2.80	2.68	2.15

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($153,355K + $187,223K + $304,322K) ÷ $290,116K
= 2.22

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 signifies that the company's current assets exactly cover its current liabilities.

Analyzing ExlService Holdings Inc's quick ratio over the past few years, we observe fluctuations in the ratio, indicating changes in the company's liquidity position. The quick ratio ranged from a high of 2.80 in September 2020 to a low of 1.03 in December 2021. This suggests that the company had ample liquid assets to cover its short-term liabilities in some periods but faced potential liquidity challenges in others.

Overall, the trend in ExlService Holdings Inc's quick ratio shows some variability but generally indicates a satisfactory ability to meet short-term obligations with liquid assets. It is essential to monitor these fluctuations over time to assess the company's ongoing liquidity position and financial health accurately.