Exponent Inc (EXPO)
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 | 258,901 | 219,708 | 203,262 | 168,665 | 187,150 | 137,099 | 148,174 | 125,649 | 161,458 | 148,443 | 165,619 | 215,050 | 297,687 | 229,785 | 239,953 | 184,521 | 197,525 | 187,632 | 155,932 | 105,594 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 24,998 | 29,999 | 29,999 | 45,001 | 20,086 | 34,220 | 46,449 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 163,183 | 137,738 | 131,824 | 114,131 | 161,909 | 129,657 | 124,540 | 109,179 | 159,029 | 137,917 | 127,534 | 109,110 | 152,982 | 126,418 | 122,966 | 87,942 | 117,308 | 96,371 | 89,783 | 77,099 |
| Quick ratio | 1.59 | 1.60 | 1.54 | 1.48 | 1.16 | 1.06 | 1.19 | 1.15 | 1.02 | 1.08 | 1.30 | 1.97 | 1.95 | 2.02 | 2.20 | 2.44 | 2.07 | 2.16 | 2.12 | 1.97 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($258,901K
+ $—K
+ $—K)
÷ $163,183K
= 1.59
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 higher quick ratio indicates a stronger liquidity position, as it shows that the company has an adequate amount of liquid assets to cover its current liabilities.
Analyzing the quick ratio trend of Exponent Inc from March 31, 2020, to December 31, 2024, we observe that the ratio has fluctuated over the period. The quick ratio started at 1.97 on March 31, 2020, and showed an increasing trend, reaching a peak of 2.44 on March 31, 2021. This upward trend indicates an improvement in Exponent's ability to meet its short-term obligations with its quick assets.
However, the quick ratio started declining from the peak in the following quarters, reaching 1.08 on September 30, 2022, and then fluctuating at around 1.00 levels until December 31, 2024. This declining trend suggests a potential deterioration in Exponent's liquidity position during this period. A quick ratio of around 1.00 may indicate that the company's current assets may not be sufficient to cover its current liabilities, posing a risk in meeting short-term obligations.
It is essential for Exponent Inc to closely monitor and manage its liquidity position to ensure that it maintains a healthy quick ratio above 1.00. A consistent and stable quick ratio above 1.00 indicates a strong liquidity position and financial stability, which is crucial for meeting short-term obligations and sustaining business operations effectively.
Peer comparison
Dec 31, 2024