Griffon Corporation (GFF)
Quick ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 114,438 | 133,452 | 123,030 | 110,546 | 102,889 | 151,790 | 175,592 | 120,558 | 120,184 | 144,687 | 122,293 | 151,220 | 248,653 | 220,697 | 175,564 | 233,807 | 218,089 | 71,999 | 69,024 | 64,792 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | 67 | 62 | 525 | 995 | 15,442 | 16,044 | 1,000 | 2,088 | 2,033 | 1,703 | 3,028 | 2,605 | 2,835 |
| Receivables | US$ in thousands | 312,765 | 320,385 | 349,818 | 299,594 | 312,432 | 359,398 | 386,119 | 350,625 | 361,653 | 429,683 | 512,449 | 334,040 | 294,804 | 363,046 | 399,193 | 318,535 | 348,124 | 359,464 | 335,033 | 272,572 |
| Total current liabilities | US$ in thousands | 348,990 | 386,708 | 361,737 | 391,679 | 359,149 | 382,303 | 381,653 | 390,859 | 423,579 | 594,637 | 583,269 | 512,838 | 531,636 | 466,477 | 458,575 | 446,798 | 441,822 | 436,171 | 387,120 | 388,511 |
| Quick ratio | 1.22 | 1.17 | 1.31 | 1.05 | 1.16 | 1.34 | 1.47 | 1.21 | 1.14 | 0.97 | 1.09 | 0.98 | 1.05 | 1.25 | 1.26 | 1.24 | 1.29 | 1.00 | 1.05 | 0.88 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($114,438K
+ $—K
+ $312,765K)
÷ $348,990K
= 1.22
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term obligations.
Based on the historical data provided for Griffon Corporation, the quick ratio has shown some fluctuations over the past few years. In the most recent quarter ending September 30, 2024, the quick ratio stood at 1.22, indicating that the company had $1.22 in quick assets for every $1 of current liabilities.
Looking at the trend over the past few quarters, the quick ratio has generally been above 1, suggesting that Griffon Corporation has had a comfortable liquidity position to meet its short-term obligations. However, there have been periods where the quick ratio dipped below 1, particularly in the quarters ending December 31, 2022, and June 30, 2022.
Overall, the trend in the quick ratio for Griffon Corporation indicates a varying but generally sound liquidity position. It is important for investors and analysts to monitor this ratio closely to assess the company's ability to cover its short-term liabilities with its liquid assets.