H&R Block Inc (HRB)

Quick ratio

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Apr 30, 2021 Apr 30, 2020
Cash US$ in thousands 1,053,330 986,975 885,015 934,251 2,661,910
Short-term investments US$ in thousands 11,200
Receivables US$ in thousands 69,075 59,987 58,447 197,876 133,197
Total current liabilities US$ in thousands 977,328 938,782 998,813 1,163,080 1,575,620
Quick ratio 1.15 1.12 0.94 0.97 1.78

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,053,330K + $—K + $69,075K) ÷ $977,328K
= 1.15

The quick ratio, also known as the acid-test ratio, reflects H&R Block Inc's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

H&R Block Inc's quick ratio has generally remained above 1 in recent years, indicating a healthy liquidity position. The ratio has fluctuated over the past five years, ranging from a low of 0.94 in June 2022 to a high of 1.78 in April 2020.

The increasing trend in the quick ratio from 2020 to 2022 suggests an improvement in the company's ability to meet its short-term obligations. However, the slight decrease in the ratio in 2023 and 2024 may indicate a potential decrease in the company's liquidity.

Overall, H&R Block Inc's quick ratio of 1.15 as of June 30, 2024, indicates that the company has sufficient liquid assets to cover its current liabilities, but investors and stakeholders should monitor any further fluctuations in the ratio to assess the company's liquidity position in the future.


Peer comparison

Jun 30, 2024