Greenbrier Companies Inc (GBX)
Quick ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 281,700 | 543,000 | 646,800 | 833,800 | 329,684 |
| Short-term investments | US$ in thousands | 34,900 | 93 | — | — | — |
| Receivables | US$ in thousands | 42,200 | 39,800 | 112,135 | 9,109 | — |
| Total current liabilities | US$ in thousands | 789,700 | 1,021,700 | 941,981 | 815,406 | 595,475 |
| Quick ratio | 0.45 | 0.57 | 0.81 | 1.03 | 0.55 |
August 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($281,700K
+ $34,900K
+ $42,200K)
÷ $789,700K
= 0.45
The quick ratio of Greenbrier Cos., Inc. has exhibited a declining trend over the past five years. The ratio decreased from 1.30 in 2019 to 1.03 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory, has weakened over the period. While a quick ratio of 1.03 still suggests that Greenbrier possesses sufficient quick assets to cover its current liabilities, the decreasing trend warrants attention. It is essential for the company to assess its liquidity management and seek opportunities to improve its short-term financial position to ensure sustainability and resilience in the face of potential economic challenges.
Peer comparison
Aug 31, 2023