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

Company name
Symbol
Quick ratio
Korn Ferry
KFY
1.71
Heidrick & Struggles International
HSII
1.44