Liquidity Services Inc (LQDT)

Quick 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
Cash	US$ in thousands	153,226	130,312	108,634	98,557	110,281	98,147	95,583	76,166	96,122	88,286	84,264	91,321	106,335	112,666	87,613	77,844	76,036	72,729	41,816	24,183
Short-term investments	US$ in thousands	2,310	6,486	8,400	8,480	7,891	7,715	5,615	3,716	1,819	—	—	—	0	—	—	—	0	0	10,000	25,000
Receivables	US$ in thousands	11,467	8,823	9,552	7,745	7,848	6,257	5,960	7,969	11,792	8,127	6,606	7,797	5,866	5,470	5,731	4,801	5,322	5,159	5,972	5,949
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
Quick ratio		1.08	1.02	0.95	1.07	1.04	0.93	0.86	0.83	0.89	0.76	0.69	0.79	1.03	1.07	0.95	1.07	1.09	0.97	0.88	0.96

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 fluctuated over the past two years, ranging from 0.69 to 1.08. Generally, a quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities.

In the most recent quarter, the quick ratio stood at 1.02, showing a slight improvement from the previous quarter. This suggests that the company's ability to meet its short-term obligations with its most liquid assets has strengthened.

Looking back further, the quick ratio has shown variability, with some quarters indicating a strong liquidity position (above 1) while others fell below the ideal threshold. This inconsistency may be a concern, as it could imply challenges in managing short-term liquidity efficiently.

Overall, Liquidity Services Inc should continue monitoring its quick ratio closely to ensure it maintains a healthy balance between liquid assets and short-term liabilities.