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.
Peer comparison
Dec 31, 2024