Korn Ferry (KFY)
Quick 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 | 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 |
| Receivables | US$ in thousands | 575,703 | 579,696 | 622,625 | 581,710 | 652,737 | 658,281 | 650,776 | 637,113 | 693,772 | 718,478 | 672,247 | 622,144 | 645,054 | 645,656 | 547,034 | 488,757 | 493,602 | 488,388 | 417,400 | 435,920 |
| 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 |
| Quick ratio | 1.71 | 1.83 | 1.97 | 1.68 | 1.70 | 1.71 | 0.20 | 1.56 | 1.77 | 1.82 | 2.02 | 1.68 | 1.84 | 2.08 | 2.17 | 1.87 | 1.94 | 1.95 | 2.06 | 1.87 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($779,298K
+ $40,658K
+ $575,703K)
÷ $817,757K
= 1.71
The analysis of Korn Ferry's quick ratio over the specified period reveals notable fluctuations, indicating variations in the company's short-term liquidity position.
From April 30, 2020, to July 31, 2021, the quick ratio remained comfortably above 1.8, peaking at 2.17 in July 2021. This suggests that during this period, Korn Ferry maintained a robust liquidity position, with sufficient liquid assets to cover its current liabilities without relying on inventory or other less liquid assets. The ratio's slight decline to 1.84 by January 31, 2022, still indicates a strong liquidity buffer, although marginally reduced compared to earlier periods.
However, the trend shows a gradual decrease in the quick ratio from April 2022 onward, dropping to 1.56 by April 2023. This decline may signify a decrease in liquid assets or an increase in current liabilities, potentially affecting liquidity health. A significant anomaly appears in July 2023, where the quick ratio substantially drops to 0.20, markedly below the generally accepted threshold of 1.0. This indicates a temporary or possibly systemic liquidity concern at that point, suggesting the company may have experienced a significant reduction in liquid assets or a surge in short-term obligations.
Subsequent data points from October 2023 onward show partial recovery, with the quick ratio moving back to around 1.83 in October 2024 and stabilizing around 1.71 in January 2025. This rebound indicates that Korn Ferry managed to restore its short-term liquidity position after the concerning dip in July 2023.
Overall, the quick ratio trend indicates that Korn Ferry generally maintained a comfortable liquidity level over the period, with a brief but notable liquidity stress in mid-2023. The recovery and subsequent stabilization suggest effective management of liquid assets relative to short-term liabilities following that period.
Peer comparison
Jan 31, 2025