Exponent Inc (EXPO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 187,150 | 161,458 | 297,687 | 197,525 | 176,436 |
| Short-term investments | US$ in thousands | — | — | — | 45,001 | 55,165 |
| Receivables | US$ in thousands | 167,360 | 170,114 | 139,861 | 111,565 | 120,138 |
| Total current liabilities | US$ in thousands | 161,909 | 159,029 | 152,982 | 117,308 | 123,960 |
| Quick ratio | 2.19 | 2.08 | 2.86 | 3.02 | 2.84 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($187,150K
+ $—K
+ $167,360K)
÷ $161,909K
= 2.19
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates stronger liquidity and a lower risk of financial distress.
Exponent Inc's quick ratio has shown variability over the past five years. In 2023, the quick ratio stands at 2.19, slightly higher than the previous year's ratio of 2.08. This implies that Exponent Inc has $2.19 in liquid assets available to cover each dollar of its current liabilities.
Compared to 2021 and 2022, where the quick ratio was higher at 2.86 and 3.02 respectively, the current ratio decreased. However, it is worth noting that the quick ratio remains relatively healthy, indicating that Exponent Inc has adequate liquid assets to cover its short-term obligations.
Overall, a quick ratio above 1 is generally considered favorable, as it suggests that the company can cover its short-term liabilities without relying heavily on inventory. Exponent Inc's consistent quick ratios above 2 over the past five years indicate sound liquidity management and a strong ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023