Hologic Inc (HOLX)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,722,500 | 2,339,500 | 1,170,300 | 701,000 | 601,800 |
| Short-term investments | US$ in thousands | — | 31,900 | — | — | 100 |
| Receivables | US$ in thousands | 625,600 | 638,100 | 942,700 | 1,028,900 | 648,700 |
| Total current liabilities | US$ in thousands | 1,207,300 | 937,700 | 1,326,800 | 1,239,300 | 1,070,100 |
| Quick ratio | 2.77 | 3.21 | 1.59 | 1.40 | 1.17 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,722,500K
+ $—K
+ $625,600K)
÷ $1,207,300K
= 2.77
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Hologic, Inc.'s quick ratio has shown a consistent upward trend over the past five years, indicating an improving liquidity position. As of September 30, 2023, the quick ratio stands at 2.94, indicating that the company has $2.94 in liquid assets available to cover each dollar of current liabilities. This indicates a strong ability to meet short-term obligations using its liquid assets. The increase in the quick ratio from 1.24 in 2019 to 2.94 in 2023 signifies that the company has significantly improved its liquidity position, potentially reducing the risk of insolvency and demonstrating effective management of its current assets and liabilities. Overall, the trend suggests that Hologic, Inc. has been effectively managing its liquidity and is in a strong position to meet its short-term obligations.
Peer comparison
Sep 30, 2023