WK Kellogg Co (KLG)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 40,000 | 47,000 | 44,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 199,000 | 199,000 | 217,000 |
| Total current liabilities | US$ in thousands | 841,000 | 770,000 | 778,000 |
| Quick ratio | 0.28 | 0.32 | 0.34 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($40,000K
+ $—K
+ $199,000K)
÷ $841,000K
= 0.28
The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. For WK Kellogg Co, the quick ratio has been declining over the three quarters of 2024, starting at 0.34 in June, decreasing to 0.32 in September, and further dropping to 0.28 by December 31, 2024.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current quick assets alone. The decreasing trend observed in WK Kellogg Co's quick ratio suggests a potential liquidity concern, as the company's ability to cover immediate obligations with its liquid assets seems to be weakening over time. It's important for the company to closely monitor its liquidity position and take necessary steps to improve its ability to meet short-term liabilities promptly.
Peer comparison
Dec 31, 2024