Korn Ferry (KFY)
Quick ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,006,960 | 941,005 | 844,024 | 978,070 | 850,778 |
| Short-term investments | US$ in thousands | 36,388 | 42,742 | 44,837 | 57,244 | 63,667 |
| Receivables | US$ in thousands | 603,649 | 581,710 | 569,601 | 590,260 | 448,733 |
| Total current liabilities | US$ in thousands | 955,598 | 934,519 | 976,260 | 984,225 | 750,070 |
| Quick ratio | 1.72 | 1.68 | 1.49 | 1.65 | 1.82 |
April 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,006,960K
+ $36,388K
+ $603,649K)
÷ $955,598K
= 1.72
The analysis of Korn Ferry's quick ratio over the specified periods indicates a generally stable liquidity position, with some fluctuations observed from April 2021 to April 2025.
As of April 30, 2021, the quick ratio stood at 1.82, reflecting a strong liquidity buffer, with the company's quick assets being approximately 1.82 times its current liabilities. This indicates an efficient ability to meet short-term obligations without relying on inventories or other less liquid current assets.
By April 30, 2022, the quick ratio declined to 1.65, suggesting a modest reduction in liquidity while still maintaining a comfortable margin above 1.0, the threshold commonly considered as indicative of adequate short-term liquidity.
The trend continued with a further decrease to 1.49 as of April 30, 2023. This decline could imply a tightening of liquidity, possibly influenced by changes in current asset composition or a strategic shift in working capital management. Despite this decrease, the ratio remained above 1.0, indicating the company retained sufficient liquid assets to cover current liabilities.
From April 2023 to April 2024, the quick ratio increased slightly to 1.68, reflecting an improvement in liquidity position. This uptick may relate to operational adjustments, improved cash management, or strategic shifts that enhanced the company's liquid asset holdings relative to current liabilities.
Finally, by April 30, 2025, the quick ratio increased marginally again to 1.72, further strengthening the liquidity profile. The gradual upward movement suggests a positive trend in the company's ability to settle short-term obligations promptly and indicates effective working capital management.
Overall, the company's quick ratio demonstrates resilience and, despite some fluctuations, remains well above the critical threshold of 1.0, signifying a solid liquidity position. The pattern indicates prudent liquidity management, with periods of slight decline being offset by subsequent recoveries, supporting the company's capacity to meet immediate obligations without reliance on inventory or other less liquid current assets.
Peer comparison
Apr 30, 2025