Gen Digital Inc. (GEN)

Quick ratio

Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Cash US$ in thousands 846,000 750,000 1,887,000 933,000 2,177,000
Short-term investments US$ in thousands 0 4,000 18,000 86,000
Receivables US$ in thousands 337,000 291,000 155,000 213,000 261,000
Total current liabilities US$ in thousands 2,648,000 2,849,000 3,065,000 2,136,000 2,622,000
Quick ratio 0.45 0.37 0.67 0.54 0.96

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($846,000K + $—K + $337,000K) ÷ $2,648,000K
= 0.45

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.

Gen Digital Inc.'s quick ratio has fluctuated over the past five years, ranging from 0.37 to 0.96. A quick ratio below 1 indicates that the company may have difficulty in meeting its current liabilities with its quick assets alone.

In 2024, Gen Digital Inc.'s quick ratio of 0.45 suggests that the company may face challenges in meeting its short-term obligations with its current quick assets. This could imply that a significant portion of the company's current assets may not be easily convertible to cash to meet immediate financial obligations.

Furthermore, the decreasing trend in the quick ratio from 2020 to 2023 (0.96 to 0.37) indicates a possible deterioration in the company's liquidity position over the years. However, the increase in the quick ratio in 2024 compared to the previous year may indicate a slight improvement in liquidity.

It is important for Gen Digital Inc. to closely monitor its quick ratio and identify opportunities to improve liquidity management to ensure it can meet its short-term obligations efficiently.


Peer comparison

Mar 31, 2024