Liquidity Services Inc (LQDT)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 199,235 | 146,268 | 129,594 | 131,842 | 94,579 |
| Total current liabilities | US$ in thousands | 155,153 | 120,718 | 123,503 | 109,173 | 74,324 |
| Current ratio | 1.28 | 1.21 | 1.05 | 1.21 | 1.27 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $199,235K ÷ $155,153K
= 1.28
The current ratio of Liquidity Services Inc has fluctuated over the past five years, ranging from 1.05 in 2022 to 1.28 in 2024. The current ratio indicates the company's ability to meet its short-term obligations with its current assets. A current ratio above 1 suggests that the company has more current assets than current liabilities, which is generally considered favorable.
In 2022, the current ratio was at its lowest at 1.05, indicating a relatively tight liquidity position. This may suggest a potential risk in meeting short-term obligations. However, by 2024, the current ratio had improved to 1.28, showing an increase in liquidity and the company's ability to cover its short-term liabilities with current assets.
Overall, while the current ratio has shown some variability, it has generally remained above 1 in recent years, indicating that Liquidity Services Inc has maintained a healthy liquidity position and is likely capable of meeting its short-term financial obligations.
Peer comparison
Sep 30, 2024