OSI Systems Inc (OSIS)

Quick ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	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
Cash	US$ in thousands	106,405	95,830	101,633	85,053	95,353	101,443	127,258	82,591	76,750	65,622	45,600	53,990	64,202	83,279	86,332	54,663	80,613	92,465	72,575	76,925
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	837,743	672,176	703,933	687,610	648,155	503,828	370,168	323,769	380,845	300,663	322,756	313,506	307,973	282,872	288,037	292,004	290,653	258,594	263,071	253,149
Total current liabilities	US$ in thousands	696,938	603,957	703,718	712,536	814,637	761,682	700,391	611,628	571,694	550,413	538,242	562,481	613,954	645,836	694,455	656,788	344,767	326,069	333,393	333,937
Quick ratio		1.35	1.27	1.14	1.08	0.91	0.79	0.71	0.66	0.80	0.67	0.68	0.65	0.61	0.57	0.54	0.53	1.08	1.08	1.01	0.99

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($106,405K + $—K + $837,743K) ÷ $696,938K
= 1.35

The OSI Systems Inc quick ratio has exhibited notable fluctuations over the analyzed period, reflecting shifts in the company's liquidity position. As of September 30, 2020, the quick ratio stood at 0.99, indicating that the company possessed nearly sufficient liquid assets to cover its short-term liabilities without relying on inventory, although it was slightly below the ideal benchmark of 1.0. By the end of that year on December 31, 2020, the ratio increased marginally to 1.01, suggesting an improved liquidity cushion.

In the subsequent quarters, the quick ratio continued to demonstrate gradual improvement, reaching 1.08 as of March 31, 2021, and maintaining this level through June 30, 2021. However, a significant decline occurred in the third quarter of 2021, with the ratio dropping to 0.53 as of September 30, 2021. This marked a period where the company's liquidity was substantially strained, with liquid assets not sufficient to fully cover short-term obligations.

Throughout the remainder of 2021 and into 2022, the quick ratio remained relatively stable but below the critical threshold of 1.0, oscillating around 0.54 to 0.68, indicating continued challenges in liquidity. Starting in the second quarter of 2022, a gradual upward trend emerged; the ratio moved from 0.61 on June 30, 2022, to 0.65 on September 30, 2022, and further improved to 0.68 by the end of 2022. This trend persisted into 2023, with the ratio reaching 0.67 as of March 31, 2023, and showing consistent growth through June and September, culminating in 0.66 and 0.71 respectively.

From late 2023 onward, there was a marked enhancement in liquidity levels. The quick ratio reached 0.79 in March 2024, indicating an increased ability to meet short-term liabilities with liquid assets. The upward momentum continued into mid-2024, with ratios of 0.91 in June and 1.08 in September, surpassing the critical threshold of 1.0 for the first time in over two years. This trend extended into the end of 2024 and the first half of 2025, with ratios rising to 1.14, 1.27, and ultimately 1.35 by June 2025, reflecting a significantly strengthened liquidity position.

Overall, OSI Systems Inc's quick ratio experienced a period of liquidity strain in late 2021 but has demonstrated consistent improvement since then. The recent trajectory indicates a robust liquidity position, with the ratio exceeding 1.0 and approaching 1.35, signaling a favorable capacity to cover short-term liabilities purely through liquid assets.