Graham Holdings Co (GHC)

Quick ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	169,897	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	200,165	142,264	171,969	170,882
Short-term investments	US$ in thousands	690,153	665,514	648,756	603,543	609,921	597,456	648,604	801,178	809,997	764,831	751,440	700,352	573,102	491,172	431,808	436,204	585,080	535,564	518,099	510,307
Receivables	US$ in thousands	503,020	515,339	442,992	482,061	542,935	531,461	489,057	509,509	622,326	566,507	513,623	510,782	548,890	491,677	467,490	541,041	606,056	592,384	523,224	506,344
Total current liabilities	US$ in thousands	1,229,680	1,151,850	1,108,390	1,128,290	1,145,170	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	1,041,870	988,961	814,564	829,756
Quick ratio		1.11	1.16	1.09	1.07	1.15	1.12	1.24	1.38	1.35	1.44	1.53	1.68	1.62	1.40	1.42	1.23	1.34	1.28	1.49	1.43

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 of Graham Holdings Co. over the past eight quarters has been relatively stable, ranging from 1.21 to 1.52. This indicates that the company has consistently maintained a healthy level of liquidity to cover its short-term obligations without relying on inventory.

The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets, excluding inventory. A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its short-term obligations.

Overall, Graham Holdings Co. has shown a consistent ability to meet its short-term financial obligations using its liquid assets over the past two years. However, it is important to monitor any significant fluctuations in the quick ratio, as it could signal changes in the company's liquidity position and ability to manage short-term financial pressures.