Korn Ferry (KFY)
Cash ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 779,298 | 694,850 | 633,376 | 941,005 | 736,797 | 620,836 | -551,002 | 844,024 | 771,898 | 593,900 | 639,784 | 978,070 | 846,505 | 725,391 | 649,304 | 850,778 | 694,128 | 553,109 | 542,786 | 689,244 |
| Short-term investments | US$ in thousands | 40,658 | 40,658 | 40,626 | 42,742 | 45,727 | 26,149 | 29,486 | 44,837 | 48,253 | 59,188 | 71,172 | 57,244 | 73,110 | 77,496 | 68,247 | 63,667 | 45,931 | 47,719 | 49,870 | 41,951 |
| Total current liabilities | US$ in thousands | 817,757 | 717,783 | 658,018 | 934,519 | 842,641 | 764,119 | 655,791 | 976,260 | 856,347 | 755,175 | 686,054 | 984,225 | 851,151 | 697,069 | 583,538 | 750,070 | 635,410 | 558,911 | 491,331 | 624,207 |
| Cash ratio | 1.00 | 1.02 | 1.02 | 1.05 | 0.93 | 0.85 | -0.80 | 0.91 | 0.96 | 0.86 | 1.04 | 1.05 | 1.08 | 1.15 | 1.23 | 1.22 | 1.16 | 1.07 | 1.21 | 1.17 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($779,298K
+ $40,658K)
÷ $817,757K
= 1.00
The cash ratio of Korn Ferry, as reflected in the available data, exhibits fluctuations over the examined period from April 30, 2020, through January 31, 2025. Initially, the cash ratio stood at 1.17 in April 2020, increasing slightly to a peak of 1.23 in July 2021. Throughout 2020 and 2021, the ratio remained relatively stable, typically oscillating within a narrow range of approximately 1.07 to 1.23, indicating a consistently strong liquidity position employing cash and cash equivalents relative to current liabilities.
Starting from October 2022, there is a notable decline in the cash ratio, decreasing from 0.86 to 0.96 in January 2023. For the most part of 2023, the ratio fluctuated near the 1.0 mark, suggesting a maintained capacity to meet short-term obligations solely through cash holdings. Notably, in July 2023, the cash ratio registered a negative value of -0.80, which typifies an anomaly or data inconsistency, as a negative cash ratio is theoretically infeasible, and may imply reporting errors, data corruption, or extraordinary circumstances not typical in financial metrics.
Following this anomaly, the cash ratio again stabilized around 0.85 to 1.05 levels from October 2023 through January 2025. Such values indicate a healthy liquidity buffer, affirming Korn Ferry’s ability to cover its current liabilities with cash and cash equivalents comfortably in most instances, barring the July 2023 anomaly.
Overall, the trends in the cash ratio suggest that Korn Ferry maintained a broadly conservative liquidity approach through most of the analyzed period. The decline from the earlier high points could reflect strategic or operational shifts, changes in working capital management, or variations in cash holdings relative to current liabilities. The brief negative reading appears to be an outlier rather than a reflection of fundamental financial health deterioration. The current levels suggest an ample liquidity cushion, facilitating short-term obligations and operational flexibility.
Peer comparison
Jan 31, 2025