PTC Inc (PTC)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	265,808	288,103	272,182	326,532	275,458
Short-term investments	US$ in thousands	—	—	—	—	28,129
Receivables	US$ in thousands	861,953	811,398	636,556	541,072	415,221
Total current liabilities	US$ in thousands	1,667,190	1,671,180	792,258	779,282	680,760
Quick ratio		0.68	0.66	1.15	1.11	1.06

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($265,808K + $—K + $861,953K) ÷ $1,667,190K
= 0.68

The quick ratio of PTC Inc has shown a fluctuating trend over the past five years, ranging from 0.68 in Sep 30, 2024, to 1.06 in Sep 30, 2020. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.

A quick ratio below 1 indicates that the company may struggle to meet its short-term liabilities with its current quick assets alone. In the case of PTC Inc, the current ratio has been consistently below 1 since Sep 30, 2020, suggesting a potential liquidity risk.

The decreasing trend from 1.06 in Sep 30, 2020, to 0.68 in Sep 30, 2024, may be a cause for concern as it indicates a decline in the company's ability to cover its short-term obligations without relying on inventory.

Further analysis of the company's cash, marketable securities, and accounts receivable levels may be necessary to understand the underlying factors contributing to the fluctuating quick ratio and to assess the company's liquidity position effectively.