Dorian LPG Ltd (LPG)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 282,508 | 148,797 | 236,759 | 79,330 | 48,390 |
| Short-term investments | US$ in thousands | 11,531 | — | — | 14,923 | 14,919 |
| Receivables | US$ in thousands | 53,013 | 76,352 | 58,636 | 56,394 | 67,669 |
| Total current liabilities | US$ in thousands | 101,813 | 94,597 | 94,837 | 82,081 | 85,013 |
| Quick ratio | 3.41 | 2.38 | 3.11 | 1.84 | 1.54 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($282,508K
+ $11,531K
+ $53,013K)
÷ $101,813K
= 3.41
The quick ratio of Dorian LPG Ltd has shown an increasing trend over the past five years, indicating an improvement in the company's short-term liquidity position. The quick ratio was 3.41 as of March 31, 2024, which means the company had $3.41 of liquid assets available to cover each dollar of current liabilities. This signifies a strong ability to meet its short-term obligations without relying heavily on inventory or other less liquid assets. The quick ratio has consistently been above 1.0, indicating that Dorian LPG Ltd has a comfortable cushion to address its short-term financial obligations. Overall, the increasing quick ratio trend suggests that the company has been managing its liquidity effectively and is in a strong financial position to meet its short-term obligations.