Science Applications International Corporation Common Stock (SAIC)

Quick ratio

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Cash	US$ in thousands	94,000	109,000	106,000	171,000	188,000
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	914,000	936,000	1,015,000	962,000	1,099,000
Total current liabilities	US$ in thousands	1,158,000	1,126,000	1,352,000	1,275,000	1,128,000
Quick ratio		0.87	0.93	0.83	0.89	1.14

February 2, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($94,000K + $—K + $914,000K) ÷ $1,158,000K
= 0.87

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio generally indicates better liquidity and financial health as it signifies the company has an adequate level of liquid assets to cover its short-term liabilities.

Analyzing Science Applications International Corporation Common Stock's quick ratio over the past five years, we observe a fluctuating trend. In the most recent fiscal year ended on February 2, 2024, the quick ratio stood at 0.87, indicating that the company had $0.87 of liquid assets available to cover each dollar of its current liabilities. Compared to the previous year's quick ratio of 0.93, the decrease suggests a potential slight weakening in the company's ability to meet its short-term obligations quickly.

Looking back further, the quick ratios for the fiscal years ending on Feb 3, 2023, Jan 28, 2022, Jan 29, 2021, and Jan 31, 2020 were 0.93, 0.83, 0.89, and 1.14, respectively. The downward trend in the quick ratio from 2020 to 2022 (1.14 to 0.83) may indicate a potential liquidity strain during that period, which improved slightly in the following years but has not yet bounced back to previous levels.

Overall, a quick ratio below 1.0 typically raises concerns about a company's short-term liquidity position. Investors and stakeholders may monitor Science Applications International Corporation's progress in managing its short-term obligations and improving its liquidity position to ensure financial stability moving forward.