Plexus Corp (PLXS)

Quick ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash	US$ in thousands	256,233	274,805	270,172	385,807	223,761
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	661,542	737,696	519,684	482,086	488,284
Total current liabilities	US$ in thousands	1,812,670	2,006,190	1,128,700	1,003,520	865,503
Quick ratio		0.51	0.50	0.70	0.86	0.82

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($256,233K + $—K + $661,542K) ÷ $1,812,670K
= 0.51

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio below 1.0 may indicate potential difficulty in meeting short-term obligations.

Plexus Corp.'s quick ratio has fluctuated over the past five years, ranging from 0.60 to 1.01. In 2023, the quick ratio stands at 0.61, which suggests that the company may face challenges in meeting its short-term obligations with its readily available liquid assets. This ratio has decreased slightly compared to the previous year, indicating a potential decrease in the company's ability to cover its current liabilities with its quick assets.

It is important to note that a quick ratio below 1.0 does not necessarily indicate financial distress, as it depends on the specific industry and business model. However, investors and creditors may pay close attention to the trend in the quick ratio over time to assess Plexus Corp.'s short-term liquidity position and its ability to weather potential economic downturns.