Leidos Holdings Inc (LDOS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 943,000 | 777,000 | 516,000 | 727,000 | 524,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,645,000 | 2,429,000 | 2,350,000 | 2,189,000 | 2,137,000 |
| Total current liabilities | US$ in thousands | 3,654,000 | 2,990,000 | 3,947,000 | 3,229,000 | 2,907,000 |
| Quick ratio | 0.98 | 1.07 | 0.73 | 0.90 | 0.92 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($943,000K
+ $—K
+ $2,645,000K)
÷ $3,654,000K
= 0.98
The quick ratio, also known as the acid-test ratio, indicates a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty paying its current liabilities using its liquid assets alone.
For Leidos Holdings Inc, the quick ratio has fluctuated over the years. As of December 31, 2020, the quick ratio was 0.92, indicating that the company could cover 92% of its short-term liabilities with its quick assets. The ratio decreased slightly to 0.90 as of December 31, 2021, showing a slight deterioration in liquidity.
However, by December 31, 2022, the quick ratio dropped to 0.73, which may raise concerns about the company's ability to meet its immediate obligations with its liquid assets. This could suggest potential liquidity challenges or increased short-term liabilities relative to liquid assets.
The situation improved significantly by December 31, 2023, with a quick ratio of 1.07, indicating that the company could cover its current liabilities with its quick assets with some room to spare. This is a positive sign of improved liquidity and financial health.
As of December 31, 2024, the quick ratio stood at 0.98, which is close to 1 and generally considered satisfactory. It suggests that Leidos Holdings Inc has a reasonable level of liquidity to meet its short-term obligations using its quick assets.
Overall, fluctuations in the quick ratio over the years indicate changes in the company's ability to cover its immediate liabilities with its liquid assets. Investors and stakeholders should monitor this ratio to assess Leidos Holdings Inc's short-term liquidity position and financial stability.
Peer comparison
Dec 31, 2024