FTI Consulting Inc (FCN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 303,222 | 491,688 | 494,485 | 294,953 | 369,373 |
| Short-term investments | US$ in thousands | 25,461 | 0 | — | — | — |
| Receivables | US$ in thousands | 1,569,690 | 1,270,580 | 1,070,560 | 1,028,450 | 1,190,030 |
| Total current liabilities | US$ in thousands | 892,769 | 769,491 | 718,116 | 670,171 | 612,537 |
| Quick ratio | 2.13 | 2.29 | 2.18 | 1.97 | 2.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($303,222K
+ $25,461K
+ $1,569,690K)
÷ $892,769K
= 2.13
The quick ratio of FTI Consulting Inc. has exhibited some fluctuation over the past five years, ranging from 1.69 in 2020 to 1.96 in 2022. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a better ability to cover short-term liabilities without relying on the sale of inventory.
FTI Consulting's quick ratio generally remained above 1, which is considered a healthy benchmark, in all the years analyzed. This suggests that the company has had an adequate level of liquid assets to cover its current liabilities without facing significant liquidity issues.
The downward trend in the quick ratio from 2022 to 2023 may indicate a slight decrease in the company's ability to quickly cover its short-term obligations. However, the ratio still remains at a relatively healthy level of 1.74 in 2023, indicating that FTI Consulting continues to maintain a reasonable level of liquidity to meet its short-term financial commitments.
Peer comparison
Dec 31, 2023