Heidrick & Struggles International (HSII)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 412,618 | 355,447 | 545,225 | 316,473 | 271,719 |
| Short-term investments | US$ in thousands | 65,538 | 266,169 | 0 | 19,999 | 61,153 |
| Receivables | US$ in thousands | 133,128 | 161,725 | 170,692 | 107,775 | 135,834 |
| Total current liabilities | US$ in thousands | 438,691 | 588,477 | 534,694 | 318,238 | 345,342 |
| Quick ratio | 1.39 | 1.33 | 1.34 | 1.40 | 1.36 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($412,618K
+ $65,538K
+ $133,128K)
÷ $438,691K
= 1.39
The quick ratio of Heidrick & Struggles International, Inc. has exhibited a generally stable trend over the past five years, ranging between 1.39 and 1.58. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
The quick ratio of 1.58 as of December 31, 2023, indicates that the company had $1.58 in liquid assets available to cover each dollar of its current liabilities. This implies a healthy liquidity position, suggesting that Heidrick & Struggles International, Inc. has a strong ability to pay off its short-term obligations without relying heavily on inventory sales.
The consistent quick ratio values above 1.0 over the five-year period suggest that the company has been maintaining an adequate level of liquidity to meet its short-term financial commitments. A quick ratio above 1.0 is generally considered favorable as it indicates that the company has sufficient liquid assets to cover its short-term liabilities.
Overall, the trend of the quick ratio for Heidrick & Struggles International, Inc. suggests that the company has been managing its short-term liquidity effectively, which is a positive indicator of its financial health and ability to meet its obligations on time.
Peer comparison
Dec 31, 2023