FTI Consulting Inc (FCN)
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 | 303,222 | 201,148 | 203,539 | 238,539 | 491,688 | 327,047 | 255,730 | 271,143 | 494,485 | 342,527 | 256,875 | 233,421 | 294,953 | 304,658 | 304,206 | 223,063 | 369,373 | 258,470 | 189,106 | 179,241 |
| Short-term investments | US$ in thousands | 25,461 | — | — | — | 0 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,569,690 | 1,734,380 | 1,652,400 | 1,323,480 | 1,270,580 | 1,327,900 | 1,264,160 | 1,151,740 | 1,070,560 | 1,133,050 | 1,165,250 | 1,128,250 | 1,028,450 | 1,279,440 | 1,182,430 | 1,205,780 | 1,190,030 | 1,227,170 | 1,202,290 | 1,075,140 |
| Total current liabilities | US$ in thousands | 892,769 | 708,531 | 644,701 | 538,452 | 769,491 | 648,999 | 570,894 | 509,930 | 718,116 | 645,622 | 562,562 | 495,778 | 670,171 | 608,261 | 517,468 | 451,341 | 612,537 | 546,784 | 463,878 | 391,465 |
| Quick ratio | 2.13 | 2.73 | 2.88 | 2.90 | 2.29 | 2.55 | 2.66 | 2.79 | 2.18 | 2.29 | 2.53 | 2.75 | 1.97 | 2.60 | 2.87 | 3.17 | 2.55 | 2.72 | 3.00 | 3.20 |
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 demonstrated a relatively stable trend over the past eight quarters, with values ranging from a low of 1.74 in Q4 2023 to a high of 2.51 in Q1 2023. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities. FTI Consulting Inc.'s quick ratio has consistently remained above 1 over the analyzed periods, indicating a strong ability to meet short-term financial obligations without relying heavily on selling inventory.
The highest quick ratio of 2.51 in Q1 2023 suggests that the company had a significant excess of quick assets compared to its current liabilities during that period. However, the recent decline to 1.74 in Q4 2023 may raise some concerns about the company's liquidity position, although it still remains above the critical threshold of 1.
Overall, the trend of FTI Consulting Inc.'s quick ratio indicates a generally healthy liquidity position, with a consistent ability to cover short-term obligations with liquid assets. It is essential for investors and stakeholders to monitor any significant deviations in the quick ratio to assess potential liquidity risks.
Peer comparison
Dec 31, 2023