Liquidity Services Inc (LQDT)

Quick ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	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	36,497	36,414	33,922
Short-term investments	US$ in thousands	8,480	7,891	7,715	5,615	3,716	1,819	—	—	—	0	—	—	—	0	0	10,000	25,000	30,000	30,000	30,000
Receivables	US$ in thousands	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	6,704	5,742	6,175
Total current liabilities	US$ in thousands	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	68,822	67,531	63,801
Quick ratio		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	1.06	1.07	1.10

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($98,557K + $8,480K + $7,745K) ÷ $107,096K
= 1.07

The quick ratio of Liquidity Services Inc has shown a fluctuating trend over the past eight quarters. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has improved from 0.75 in Q2 2022 to 1.15 in Q1 2024. This indicates an increase in the company's ability to cover its current liabilities with its quick assets.

However, it is important to note that the quick ratio decreased to 0.93 in Q2 2023 before starting to climb again. This dip may suggest some fluctuations in the company's liquidity position during that period. Overall, the upward trend in the quick ratio over the last two years demonstrates an improvement in Liquidity Services Inc's short-term liquidity position, which is a positive indicator for the company's financial health.