FTI Consulting Inc (FCN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 660,493 | 303,222 | 491,688 | 494,485 | 294,953 |
| Short-term investments | US$ in thousands | 0 | 25,461 | 0 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 931,759 | 892,769 | 769,491 | 718,116 | 670,171 |
| Quick ratio | 0.71 | 0.37 | 0.64 | 0.69 | 0.44 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($660,493K
+ $0K
+ $—K)
÷ $931,759K
= 0.71
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. For FTI Consulting Inc, the quick ratio has fluctuated over the past five years:
- As of December 31, 2020, the quick ratio was 0.44, indicating that the company had difficulties covering its short-term liabilities with its highly liquid assets.
- By December 31, 2021, the quick ratio improved to 0.69, suggesting a better ability to meet short-term obligations.
- However, by the end of December 31, 2022, the quick ratio decreased to 0.64, which may signal a slight deterioration in the company's liquidity position.
- Subsequently, by December 31, 2023, the quick ratio fell to 0.37, indicating a significant challenge in meeting short-term obligations with available liquid assets.
- The most recent data as of December 31, 2024, shows a quick ratio of 0.71, representing an improvement in liquidity compared to the previous year.
Overall, the fluctuating trend in FTI Consulting Inc's quick ratio suggests varying levels of liquidity and the company's ability to handle short-term financial obligations. It is important for stakeholders to monitor these ratios to assess the company's financial health and liquidity management.
Peer comparison
Dec 31, 2024