Graham Holdings Co (GHC)

Quick ratio

		Dec 31, 2024	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
Cash	US$ in thousands	260,852	244,361	187,615	130,860	201,891	159,981	111,738	123,469	169,319	149,773	126,368	132,224	145,886	133,882	114,802	350,135	413,991	295,672	260,247	178,646
Short-term investments	US$ in thousands	858,743	831,760	822,034	802,943	697,028	672,346	661,306	616,379	622,408	610,756	662,831	816,966	824,445	779,073	765,740	715,580	587,582	506,246	444,742	451,380
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,199,800	1,331,860	1,208,040	1,241,750	1,229,680	1,151,850	1,108,390	1,128,290	1,174,010	1,141,060	1,020,420	1,042,890	1,166,340	1,020,610	902,602	927,734	949,646	915,459	818,104	937,379
Quick ratio		0.93	0.81	0.84	0.75	0.73	0.72	0.70	0.66	0.67	0.67	0.77	0.91	0.83	0.89	0.98	1.15	1.05	0.88	0.86	0.67

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 fluctuations over the past several quarters. Starting at 0.67 on March 31, 2020, the quick ratio increased to 1.15 on March 31, 2021, indicating an improvement in the company's short-term liquidity position. However, the ratio decreased to 0.77 by June 30, 2022, before dropping further to 0.66 by March 31, 2023. This downward trend suggests a potential deterioration in the company's ability to meet its short-term obligations with its most liquid assets.

Although the quick ratio recovered slightly to 0.84 by June 30, 2024, it remained below 1, indicating potential liquidity challenges for Graham Holdings Co. It is crucial for the company to closely monitor its liquidity position and take necessary measures to ensure it can meet its short-term financial obligations, especially during periods of economic uncertainty or operational challenges.