Genpact Limited (G)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 648,246 | 583,670 | 646,765 | 899,458 | 680,440 |
| Short-term investments | US$ in thousands | 23,359 | 0 | — | — | — |
| Receivables | US$ in thousands | 1,201,790 | 1,121,360 | 998,054 | 890,539 | 883,656 |
| Total current liabilities | US$ in thousands | 963,739 | 1,317,930 | 1,103,320 | 1,308,800 | 1,202,640 |
| Quick ratio | 1.94 | 1.29 | 1.49 | 1.37 | 1.30 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($648,246K
+ $23,359K
+ $1,201,790K)
÷ $963,739K
= 1.94
The quick ratio of Genpact Limited, which measures the company's ability to meet its short-term obligations with its most liquid assets, has been showing a positive trend over the years.
As of December 31, 2020, the quick ratio stood at 1.30, indicating that the company had $1.30 of liquid assets available to cover each dollar of current liabilities. Over the following years, the quick ratio improved steadily to 1.37 by December 31, 2021, further increasing to 1.49 by December 31, 2022.
However, there was a slight decline in the quick ratio to 1.29 by December 31, 2023, which could be a point of concern as it indicates a potential reduction in the company's ability to quickly meet its short-term obligations.
The quick ratio rebounded significantly to 1.94 by December 31, 2024, which is a positive sign as it suggests that Genpact Limited has ample liquid assets to cover its short-term liabilities and indicates a strong financial position.
Overall, the trend in Genpact Limited's quick ratio demonstrates an improving liquidity position in recent years, with the exception of a minor dip in 2023, reflecting a generally healthy ability to meet short-term obligations using its liquid assets.
Peer comparison
Dec 31, 2024