ScanSource Inc (SCSC)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 185,460 | 36,178 | 37,987 | 62,718 | 29,485 |
| Short-term investments | US$ in thousands | — | 4,687 | 1,686 | — | — |
| Receivables | US$ in thousands | 671,935 | 825,775 | 799,547 | 642,097 | 499,451 |
| Total current liabilities | US$ in thousands | 669,352 | 786,801 | 814,264 | 732,939 | 719,007 |
| Quick ratio | 1.28 | 1.10 | 1.03 | 0.96 | 0.74 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($185,460K
+ $—K
+ $671,935K)
÷ $669,352K
= 1.28
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 quick ratio above 1 indicates that a company can cover its current liabilities with its quick assets.
ScanSource Inc's quick ratio has been improving over the past five years, increasing from 0.74 in 2020 to 1.28 in 2024. This upward trend suggests that the company has strengthened its liquidity position and is better equipped to meet its short-term financial obligations.
In 2024, ScanSource Inc's quick ratio of 1.28 indicates that the company has $1.28 of quick assets available to cover each $1 of current liabilities. This implies that the company has a comfortable margin of safety in meeting its short-term obligations without having to rely heavily on inventory.
Overall, a quick ratio above 1 and the improving trend over the years suggest that ScanSource Inc has a solid liquidity position, which may be beneficial in managing unforeseen financial challenges and maintaining financial stability.
Peer comparison
Jun 30, 2024