Liquidity Services Inc (LQDT)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 153,226 | 110,281 | 96,122 | 106,335 | 76,036 |
| Short-term investments | US$ in thousands | 2,310 | 7,891 | 1,819 | 0 | 0 |
| Receivables | US$ in thousands | 11,467 | 7,848 | 11,792 | 5,866 | 5,322 |
| Total current liabilities | US$ in thousands | 155,153 | 120,718 | 123,503 | 109,173 | 74,324 |
| Quick ratio | 1.08 | 1.04 | 0.89 | 1.03 | 1.09 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($153,226K
+ $2,310K
+ $11,467K)
÷ $155,153K
= 1.08
The quick ratio of Liquidity Services Inc has shown some fluctuations over the past five years. In 2024, the quick ratio is 1.08, indicating that the company has $1.08 of highly liquid assets for every $1 of current liabilities. This suggests that the company has a strong ability to meet its short-term obligations using its most liquid assets.
Comparing this to the previous years, we see a slight improvement from 2023 where the quick ratio was 1.04. The quick ratio was lower in 2022 at 0.89, indicating a potential liquidity challenge that year. However, in 2021 and 2020, the quick ratios were 1.03 and 1.09 respectively, showing a relatively strong liquidity position for those years.
Overall, the trend in the quick ratio suggests that Liquidity Services Inc has generally been able to maintain a healthy level of liquidity to meet its short-term obligations over the past five years, with some fluctuations in between. It is important for the company to monitor and manage its liquidity closely to ensure it can sustain its operations effectively.
Peer comparison
Sep 30, 2024