Graham Holdings Co (GHC)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 260,852 169,897 169,319 145,886 413,991
Short-term investments US$ in thousands 858,743 697,028 622,408 824,445 587,582
Receivables US$ in thousands
Total current liabilities US$ in thousands 1,199,800 1,229,680 1,174,010 1,166,340 949,646
Quick ratio 0.93 0.71 0.67 0.83 1.05

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($260,852K + $858,743K + $—K) ÷ $1,199,800K
= 0.93

The quick ratio of Graham Holdings Co has shown a declining trend over the past five years, starting at 1.05 in December 31, 2020, and decreasing to 0.83 in December 31, 2021. The ratio continued to decrease to 0.67 in December 31, 2022, indicating a potential liquidity concern. However, there was a slight improvement in the quick ratio to 0.71 in December 31, 2023, before rising to 0.93 in December 31, 2024. While the ratio remains below 1 in most years, the increase in the latest period suggests a better ability to meet short-term obligations using quick assets. Further analysis into the composition of quick assets and current liabilities is recommended to fully assess the liquidity position of the company.