Fortrea Holdings Inc. (FTRE)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 108,600 | 107,500 | 114,300 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 470,700 | 440,400 | 402,100 |
| Total current liabilities | US$ in thousands | 775,900 | 774,600 | 752,100 |
| Quick ratio | 0.75 | 0.71 | 0.69 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($108,600K
+ $—K
+ $470,700K)
÷ $775,900K
= 0.75
The quick ratio of Fortrea Holdings Inc. has been fluctuating over the past three quarters, indicating the company's liquidity position. A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term obligations using its most liquid assets.
The quick ratio of 0.75 as of December 31, 2023, improved slightly from the previous quarter, standing at 0.71 as of September 30, 2023. Despite this improvement, the quick ratio remains below the ideal threshold of 1.0. This indicates that the company may still face challenges in meeting its short-term liabilities using its quick assets.
Further back in June 30, 2023, the quick ratio was even lower at 0.69, suggesting a slight improvement in liquidity since then. However, Fortrea Holdings Inc. should aim to strengthen its quick ratio to at least 1.0 to ensure that it can readily cover its short-term obligations.
Overall, the trend in the quick ratio of Fortrea Holdings Inc. shows some variability, signaling the need for the company to closely monitor and manage its liquidity position to ensure financial stability and meet its short-term financial commitments effectively.
Peer comparison
Dec 31, 2023