Hologic Inc (HOLX)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,160,200 | 2,722,500 | 2,339,500 | 1,170,300 | 701,000 |
| Short-term investments | US$ in thousands | 173,400 | 0 | 31,900 | — | — |
| Receivables | US$ in thousands | 600,400 | 625,600 | 638,100 | 942,700 | 1,028,900 |
| Total current liabilities | US$ in thousands | 1,037,200 | 1,207,300 | 937,700 | 1,326,800 | 1,239,300 |
| Quick ratio | 2.83 | 2.77 | 3.21 | 1.59 | 1.40 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,160,200K
+ $173,400K
+ $600,400K)
÷ $1,037,200K
= 2.83
The quick ratio of Hologic Inc has shown a generally positive trend over the past five years, indicating the company's ability to meet its short-term obligations with its most liquid assets. As of September 30, 2024, the quick ratio stood at 2.83, reflecting an improvement from the previous year. This implies that the company has $2.83 in current assets that can be quickly converted into cash for every $1 of current liabilities, showcasing a strong liquidity position.
Compared to the ratio in 2020, which was 1.40, there has been a significant enhancement in the company's ability to cover its short-term debts with liquid assets. The quick ratio peaked in 2022 at 3.21, indicating a robust liquidity position that year. Despite a slight dip in 2023, the ratio rebounded in 2024, suggesting efficient management of current assets and liabilities.
Overall, the upward trend in the quick ratio signifies Hologic Inc's improved liquidity and financial health in recent years, providing a favorable indication of the company's capability to weather short-term financial challenges.
Peer comparison
Sep 30, 2024