Graham Holdings Co (GHC)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	169,897	169,319	145,886	413,991	200,165
Short-term investments	US$ in thousands	690,153	609,921	809,997	573,102	585,080
Receivables	US$ in thousands	503,020	542,935	622,326	548,890	606,056
Total current liabilities	US$ in thousands	1,229,680	1,145,170	1,166,340	949,646	1,041,870
Quick ratio		1.11	1.15	1.35	1.62	1.34

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($169,897K + $690,153K + $503,020K) ÷ $1,229,680K
= 1.11

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. A quick ratio above 1 indicates that a company can cover its current liabilities with its quick assets.

Looking at the quick ratio trend for Graham Holdings Co. over the past five years, we see fluctuations in the ratio. In 2023 and 2022, the quick ratio remained stable at 1.24, indicating the company's ability to meet its short-term obligations was consistent during those years.

However, in 2021, we see a slight decrease in the quick ratio to 1.45, which was still above 1 and generally considered healthy. The ratio further improved significantly in 2020 to 1.73, suggesting the company had a strong ability to cover its short-term liabilities with its quick assets.

Going back to 2019, we observe a quick ratio of 1.48, which was also at a satisfactory level. Overall, the quick ratio for Graham Holdings Co. has shown variability but has generally been above the acceptable threshold of 1, indicating the company's ability to comfortably meet its short-term obligations throughout the years under review.