Kratos Defense & Security Solutions (KTOS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 329,300 | 72,800 | 81,300 | 349,400 | 380,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 323,800 | 329,200 | 328,500 | 284,700 | 272,300 |
| Total current liabilities | US$ in thousands | 296,700 | 292,500 | 234,200 | 221,100 | 197,600 |
| Quick ratio | 2.20 | 1.37 | 1.75 | 2.87 | 3.31 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($329,300K
+ $—K
+ $323,800K)
÷ $296,700K
= 2.20
The analysis of Kratos Defense & Security Solutions' quick ratio over the period from December 31, 2020, to December 31, 2024, reveals notable fluctuations indicative of the company's liquidity position.
At the end of 2020, the quick ratio stood at 3.31, suggesting a strong liquidity position wherein the company's quick assets were more than three times its current liabilities. This high ratio reflects robust access to liquid assets, providing a comfortable buffer to meet short-term obligations without reliance on inventory sales.
By the close of 2021, the quick ratio declined slightly to 2.87. Despite this decrease, the ratio remained well above 1.0, indicating that the company maintained sufficient liquid assets to cover its current liabilities comfortably. The reduction might imply a slight increase in current liabilities, a decrease in quick assets, or a combination thereof.
The subsequent year, 2022, saw a significant decline in the quick ratio to 1.75. Although still above the critical threshold of 1.0, this marked a substantial reduction from the previous year, signaling a tightening liquidity position. This trend suggests possible strategic changes, operational shifts, or increased short-term liabilities that impacted the company's immediate liquidity cushion.
In 2023, the quick ratio further decreased to 1.37, approaching a more cautious level. While still representing adequate liquidity, the narrowing margin highlights increased pressure on the company's ability to meet short-term obligations solely with its liquid assets.
However, in 2024, the quick ratio improved to 2.20, indicating a partial recovery in liquidity levels. This rebound may reflect effective liquidity management, asset realignment, or reductions in current liabilities, enhancing the company's short-term financial stability.
Overall, the trajectory of Kratos Defense & Security Solutions’ quick ratio demonstrates a pattern of initial strong liquidity positioning, followed by a period of tightening, and a subsequent partial recovery. The fluctuations imply that while the company has faced periods of diminished immediate liquidity, it has managed to bolster its short-term liquidity position by the end of 2024, although it remains below the initial 2020 peak.
Peer comparison
Dec 31, 2024