ExlService Holdings Inc (EXLS)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	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	119,165	101,432	84,842	86,688
Short-term investments	US$ in thousands	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	202,238	179,340	168,204	216,056
Receivables	US$ in thousands	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	245,784	179,702	180,680	176,889
Total current liabilities	US$ in thousands	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	229,349	187,902	168,240	157,533
Quick ratio		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	2.47	2.45	2.58	3.04

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 been relatively stable over the past eight quarters, ranging from 2.00 to 2.55. This indicates that the company has consistently maintained a strong ability to meet its short-term obligations with its most liquid assets, such as cash and accounts receivable, without relying heavily on inventory.

The quick ratio values above 1.0 for all periods suggest that ExlService Holdings Inc has sufficient liquid assets to cover its current liabilities, demonstrating a healthy liquidity position. The highest quick ratio of 2.55 in Q1 2022 indicates a particularly strong liquidity position at that time, which may have been driven by efficient management of current assets and liabilities.

Overall, the consistent quick ratio above 1.0 and the relatively stable trend observed in the quick ratio for ExlService Holdings Inc reflect a sound financial position in terms of short-term liquidity management. It suggests that the company is well positioned to meet its immediate financial obligations without facing liquidity constraints.