Leidos Holdings Inc (LDOS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 777,000 | 516,000 | 727,000 | 524,000 | 668,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,429,000 | 2,350,000 | 2,189,000 | 2,137,000 | 1,734,000 |
| Total current liabilities | US$ in thousands | 2,990,000 | 3,947,000 | 3,229,000 | 2,907,000 | 2,333,000 |
| Quick ratio | 1.07 | 0.73 | 0.90 | 0.92 | 1.03 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($777,000K
+ $—K
+ $2,429,000K)
÷ $2,990,000K
= 1.07
The quick ratio of Leidos Holdings Inc has shown fluctuations over the past five years. The quick ratio was 1.03 in 2019, then decreased to 0.92 in 2020, followed by an increase to 0.90 in 2021, a significant drop to 0.73 in 2022, and finally a recovery to 1.07 in 2023.
The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities. In this case, Leidos Holdings Inc has generally maintained a quick ratio above 1 in the past five years, except for 2020 and 2022 when it fell below this threshold.
The improvement in the quick ratio in 2023 compared to the previous year signifies an enhancement in the company's short-term liquidity position. Investors and creditors may view this positively as it suggests that Leidos Holdings Inc has strengthened its ability to meet its immediate financial obligations using its liquid assets. However, it would be important to monitor future trends in the quick ratio to assess the company's ongoing liquidity performance.
Peer comparison
Dec 31, 2023