Science Applications International Corporation Common Stock (SAIC)
Quick ratio
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 56,000 | 94,000 | 109,000 | 106,000 | 171,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,000,000 | 914,000 | 936,000 | 1,015,000 | 962,000 |
| Total current liabilities | US$ in thousands | 1,396,000 | 1,158,000 | 1,126,000 | 1,352,000 | 1,275,000 |
| Quick ratio | 0.76 | 0.87 | 0.93 | 0.83 | 0.89 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($56,000K
+ $—K
+ $1,000,000K)
÷ $1,396,000K
= 0.76
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term financial liabilities.
From the data provided, we can see that Science Applications International Corporation's quick ratio has fluctuated over the past five years. It was 0.89 as of January 29, 2021, indicating that the company had $0.89 in liquid assets available to cover each dollar of its current liabilities. The ratio decreased slightly to 0.83 on January 28, 2022, suggesting a reduction in the company's liquidity position.
However, there was an improvement in the quick ratio to 0.93 on February 3, 2023, which may have been a positive sign for the company's ability to meet its short-term obligations. Yet, the ratio decreased once again to 0.87 on February 2, 2024, indicating a potential decline in liquidity.
The most recent data point on January 31, 2025, shows a quick ratio of 0.76, which is the lowest among the five years analyzed. This decrease suggests that Science Applications International Corporation may have faced challenges in maintaining sufficient liquid assets to cover its short-term liabilities.
In conclusion, the trend in Science Applications International Corporation's quick ratio over the past five years indicates fluctuations in its liquidity position. A quick ratio below 1 for most of the years suggests that the company may need to closely monitor and manage its short-term liquidity to ensure financial stability and meet its obligations.
Peer comparison
Jan 31, 2025