Maximus Inc (MMS)

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	183,123	102,794	77,370	104,186	65,405	35,007	56,344	63,050	40,658	93,748	92,638	181,790	135,061	96,110	101,683	132,597	71,737	81,548	126,257	149,515
Short-term investments	US$ in thousands	—	—	—	-72,512	—	—	—	—	—	21,864	17,737	3,233	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	879,514	850,462	916,004	860,409	826,873	918,606	742,387	1,014,050	807,110	868,010	885,685	849,410	834,819	1,130,000	760,400	782,800	786,200	829,700	529,928	511,670
Total current liabilities	US$ in thousands	807,529	680,043	728,716	658,366	723,014	683,301	681,175	746,222	774,447	730,206	753,266	710,792	789,433	860,604	593,724	547,400	561,168	502,544	438,332	432,708
Quick ratio		1.32	1.40	1.36	1.35	1.23	1.40	1.17	1.44	1.09	1.35	1.32	1.46	1.23	1.42	1.45	1.67	1.53	1.81	1.50	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

The quick ratio of Maximus Inc has fluctuated over the past two years, ranging from 1.09 to 1.81. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 indicates that the company has just enough liquid assets to cover its current liabilities.

The quick ratio has generally been above 1, indicating that Maximus Inc has been able to meet its short-term obligations comfortably. A ratio above 1 suggests that the company has an adequate level of liquid assets to cover its current liabilities, which is a positive sign for creditors and investors.

The fluctuation in the quick ratio over time may indicate changes in the company's liquidity position. A ratio above 1.5 may suggest that the company is holding excess liquid assets that could potentially be invested elsewhere for higher returns. On the other hand, a ratio below 1 may signal potential liquidity issues that need to be monitored.

Overall, Maximus Inc's quick ratio indicates a good level of liquidity and ability to meet its short-term obligations. However, it is essential for the company to maintain a balance between liquidity and profitability for sustainable growth and financial stability.