Liquidity Services Inc (LQDT)

Current ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	199,235	173,225	151,438	137,963	146,268	134,902	130,577	113,638	129,594	120,340	112,172	120,485	131,842	139,505	114,905	100,871	94,579	94,930	75,846	70,523
Total current liabilities	US$ in thousands	155,153	143,251	133,166	107,096	120,718	120,194	124,047	105,437	123,503	126,891	132,586	125,021	109,173	109,998	98,413	77,293	74,324	80,236	65,341	57,261
Current ratio		1.28	1.21	1.14	1.29	1.21	1.12	1.05	1.08	1.05	0.95	0.85	0.96	1.21	1.27	1.17	1.31	1.27	1.18	1.16	1.23

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 shown fluctuations over the past few quarters. As of September 30, 2024, the current ratio stands at 1.28, indicating that the company has $1.28 in current assets for every $1 in current liabilities. This suggests that the company has a healthy level of liquidity to meet its short-term obligations.

The trend in the current ratio shows some variability, with ratios fluctuating between 0.85 and 1.29 over the past two years. The current ratio peaked at 1.31 in December 2020 and hit a low of 0.85 in March 2022 before gradually improving.

A current ratio above 1 implies that the company has more current assets than current liabilities, which is generally considered a positive sign. However, a ratio that is too high may indicate an inefficient use of resources, while a ratio below 1 may suggest liquidity issues.

It is important to monitor the current ratio over time and in comparison to industry benchmarks to assess the company's liquidity position and ability to manage short-term obligations effectively.