Maximus Inc (MMS)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	183,123	65,405	40,658	135,061	71,737
Short-term investments	US$ in thousands	—	56,891	—	—	—
Total current liabilities	US$ in thousands	807,529	723,014	774,447	789,433	561,168
Cash ratio		0.23	0.17	0.05	0.17	0.13

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($183,123K + $—K) ÷ $807,529K
= 0.23

The cash ratio of Maximus Inc has shown fluctuations over the past five years. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents.

In 2024, the cash ratio improved to 0.23 from 0.17 in 2023, indicating that the company had a higher level of cash and cash equivalents relative to its current liabilities. This suggests that Maximus Inc may have strengthened its liquidity position compared to the previous year.

Looking further back, the cash ratio was particularly low in 2022 at 0.05, indicating that the company had minimal cash available to cover its short-term obligations at that time. However, it improved in 2023 and 2024, indicating potential efforts to bolster liquidity.

Compared to 2021 and 2020 where the cash ratios were 0.17 and 0.13 respectively, there has been a mixed performance over the years. Maximus Inc should continue to monitor its cash position to ensure it maintains a healthy liquidity level to meet its short-term obligations efficiently.