RBC Bearings Incorporated (RBC)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 63,500 | 65,400 | 182,900 | 151,086 | — |
| Short-term investments | US$ in thousands | — | — | — | 90,249 | — |
| Receivables | US$ in thousands | 255,200 | 239,600 | 247,487 | 110,472 | 128,995 |
| Total current liabilities | US$ in thousands | 294,300 | 309,300 | 313,500 | 88,238 | 103,755 |
| Quick ratio | 1.08 | 0.99 | 1.37 | 3.99 | 1.24 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($63,500K
+ $—K
+ $255,200K)
÷ $294,300K
= 1.08
The quick ratio of RBC Bearings Incorporated has fluctuated over the past five years. In 2024, the quick ratio stands at 1.08, indicating that the company has $1.08 of liquid assets available to cover each dollar of its current liabilities. This suggests RBC Bearings Incorporated has improved its liquidity position compared to the previous year when the quick ratio was 0.99.
In 2023, the quick ratio was 1.37, showing a decline from the exceptionally high ratio of 3.99 in 2022. A quick ratio above 1 indicates that the company has an adequate amount of liquid assets to cover its short-term liabilities. However, the significant drop in 2023 from the previous year's ratio may raise some concerns about the company's liquidity management during that period.
While the quick ratio provides a snapshot of a company's ability to meet its short-term obligations, it is important to consider other factors and ratios for a comprehensive analysis of RBC Bearings Incorporated's financial health and liquidity position.
Peer comparison
Mar 31, 2024