QuinStreet Inc (QNST)

Current ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total current assets	US$ in thousands	169,087	151,204	182,792	206,176	185,572
Total current liabilities	US$ in thousands	126,398	89,820	109,579	115,611	85,837
Current ratio		1.34	1.68	1.67	1.78	2.16

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $169,087K ÷ $126,398K
= 1.34

The current ratio for QuinStreet Inc has exhibited a decreasing trend over the past five years, standing at 1.34 as of June 30, 2024, compared to 1.68 in the previous year. A current ratio below 2 indicates that the company may have potential difficulties in meeting its short-term obligations with its current assets alone. The decreasing trend in the current ratio could be a concern, as it suggests a potential deterioration in the company's liquidity position and ability to cover its short-term debts. Further analysis of the company's current assets and liabilities is warranted to understand the underlying reasons for the declining trend in the current ratio and to assess the company's liquidity risk.