Manhattan Associates Inc (MANH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 270,741 | 225,463 | 263,706 | 204,705 | 110,678 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 182,544 | 167,414 | 127,017 | 111,076 | 102,269 |
| Total current liabilities | US$ in thousands | 365,915 | 315,595 | 249,042 | 196,986 | 181,596 |
| Quick ratio | 1.24 | 1.24 | 1.57 | 1.60 | 1.17 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($270,741K
+ $—K
+ $182,544K)
÷ $365,915K
= 1.24
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1.0 indicates that a company has enough liquid assets to cover its current liabilities.
Manhattan Associates, Inc.'s quick ratio has shown some fluctuation over the past five years. In 2023, the quick ratio was 1.31, slightly lower than the previous year's 1.32. This indicates a slight decrease in the company's ability to cover its short-term obligations with its quick assets.
Comparing to 2021 and 2022 when the quick ratio was 1.64 and 1.70, respectively, the current ratio has decreased, suggesting a potential decrease in liquidity or an increase in short-term liabilities.
In 2019, the quick ratio was 1.28, indicating that the company had slightly fewer quick assets to cover its current liabilities compared to the most recent year.
Overall, Manhattan Associates, Inc.'s quick ratio has remained above 1.0 throughout the years, signaling that the company has generally maintained a healthy level of liquidity to meet its short-term financial obligations. However, the recent slight decrease in the quick ratio may warrant further investigation to understand any underlying factors affecting the company's liquidity position.
Peer comparison
Dec 31, 2023