Fortrea Holdings Inc. (FTRE)

Quick ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
Cash US$ in thousands 118,500 105,300 126,200 92,800
Short-term investments US$ in thousands — — — —
Receivables US$ in thousands 151,700 119,200 55,500 353,900
Total current liabilities US$ in thousands 949,500 795,800 749,000 818,300
Quick ratio 0.28 0.28 0.24 0.55

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($118,500K + $—K + $151,700K) ÷ $949,500K
= 0.28

The quick ratio of Fortrea Holdings Inc. has shown a declining trend over the four quarters ending December 31, 2024. Starting at 0.55 in March 31, 2024, the quick ratio dropped to 0.24 by June 30, 2024, indicating a significant decrease in the company's ability to meet its short-term obligations using its most liquid assets. However, there was a slight improvement as the ratio increased to 0.28 in both September 30, 2024 and December 31, 2024. Despite this improvement, the quick ratio remains below the ideal threshold of 1.0, suggesting a potential liquidity risk for Fortrea Holdings Inc. as of December 31, 2024. Further analysis of the company's current assets and liabilities is warranted to better understand its liquidity position.