Genpact Limited (G)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 583,670 | 646,765 | 899,458 | 680,440 | 467,096 |
| Short-term investments | US$ in thousands | — | 5,372 | 5,839 | 8,774 | 1,784 |
| Receivables | US$ in thousands | 1,121,360 | 998,054 | 890,539 | 883,656 | 918,464 |
| Total current liabilities | US$ in thousands | 1,317,930 | 1,103,320 | 1,308,800 | 1,202,640 | 910,211 |
| Quick ratio | 1.29 | 1.50 | 1.37 | 1.31 | 1.52 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($583,670K
+ $—K
+ $1,121,360K)
÷ $1,317,930K
= 1.29
The quick ratio of Genpact Ltd has shown some fluctuations over the past five years. As of December 31, 2023, the quick ratio stands at 1.44, which indicates that the company has $1.44 in liquid assets available to cover each $1 of its current liabilities. This suggests that Genpact has a strong ability to meet its short-term obligations using its most liquid assets.
Comparing this to previous years, the quick ratio has decreased from 1.61 in 2022 to 1.44 in 2023. This decline may raise some concerns about the company's liquidity position, as it indicates a slight reduction in its ability to cover current liabilities with liquid assets. However, the quick ratio of 1.44 is still considered satisfactory, as it exceeds the ideal threshold of 1, indicating that Genpact has a comfortable margin when it comes to meeting its short-term obligations.
Looking back further, the quick ratio has fluctuated within a narrow range over the past five years, ranging from 1.45 to 1.70. This stability suggests that Genpact has maintained a consistent level of liquidity over this period.
Overall, while the slight decline in the quick ratio from 2022 to 2023 may warrant attention, Genpact's liquidity position remains strong and indicates the company's ability to manage its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2023