Maximus Inc (MMS)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	183,123	65,405	40,658	135,061	71,737
Short-term investments	US$ in thousands	—	56,891	—	—	—
Receivables	US$ in thousands	879,514	826,873	807,110	834,819	786,200
Total current liabilities	US$ in thousands	807,529	723,014	774,447	789,433	561,168
Quick ratio		1.32	1.31	1.09	1.23	1.53

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($183,123K + $—K + $879,514K) ÷ $807,529K
= 1.32

Maximus Inc's quick ratio has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that Maximus Inc has more than enough liquid assets to cover its current liabilities, suggesting a healthy liquidity position.

In 2020, the quick ratio was relatively high at 1.53, which may signify a strong liquidity position. However, the ratio decreased in 2021 to 1.23 but remained above 1, indicating continued ability to cover short-term obligations. The ratio increased in 2022 to 1.09, which could be a potential concern as it dipped below the ideal threshold of 1. This may indicate a slight strain on liquidity despite still having enough liquid assets to cover short-term liabilities.

In the following years, the quick ratio improved to 1.31 in 2023 and further to 1.32 in 2024. These increases suggest that Maximus Inc has strengthened its ability to meet short-term obligations with liquid assets. Overall, while there have been fluctuations, the trend in recent years indicates that Maximus Inc has maintained a reasonably strong liquidity position, which is important for financial stability and operational flexibility.