Kenvue Inc. (KVUE)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,382,000 | 1,062,000 | 1,231,000 | 1,691,000 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Receivables | US$ in thousands | 2,073,000 | 2,109,000 | 2,096,000 | — |
| Total current liabilities | US$ in thousands | 5,481,000 | 5,161,000 | 5,299,000 | 4,210,000 |
| Quick ratio | 0.63 | 0.61 | 0.63 | 0.40 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,382,000K
+ $—K
+ $2,073,000K)
÷ $5,481,000K
= 0.63
The quick ratio of Kenvue Inc. has fluctuated over the four quarters of the year. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. In the most recent quarter (December 31, 2023), the quick ratio stood at 0.63, indicating that for every $1 of current liabilities, the company has $0.63 in highly liquid assets available to cover these obligations. This suggests Kenvue Inc. may have some challenges meeting its short-term obligations if they all come due at once.
Comparing this to the previous quarters, the quick ratio was relatively stable in the second and fourth quarters at 0.61 and 0.63, respectively. However, there was a significant drop in the quick ratio during the first quarter, where it fell to 0.40. This sharp decline suggests that the company's liquidity position weakened significantly in that period.
Overall, while the quick ratio provides insight into the company's short-term liquidity position, trends in the ratio over time can indicate how effectively Kenvue Inc. is managing its current assets to meet its short-term obligations. The management should closely monitor this ratio to ensure adequate liquidity to meet its short-term financial commitments.
Peer comparison
Dec 31, 2023