Simulations Plus Inc (SLP)
Quick ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 10,311 | 57,523 | 51,567 | 36,984 | 49,207 |
| Short-term investments | US$ in thousands | 9,944 | 57,940 | 76,668 | 86,620 | 66,804 |
| Receivables | US$ in thousands | 9,136 | 10,201 | 13,787 | 9,851 | 7,422 |
| Total current liabilities | US$ in thousands | 12,069 | 11,987 | 7,735 | 11,574 | 5,506 |
| Quick ratio | 2.44 | 10.48 | 18.36 | 11.53 | 22.42 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,311K
+ $9,944K
+ $9,136K)
÷ $12,069K
= 2.44
The quick ratio of Simulations Plus Inc has experienced fluctuations over the past five years, ranging from 2.44 in August 2024 to 22.42 in August 2020. The quick ratio measures the company's ability to cover its current liabilities with its most liquid assets.
The quick ratio of 2.44 in August 2024 indicates that the company had $2.44 of liquid assets available to cover $1 of current liabilities, suggesting a healthy liquidity position. However, the quick ratio has decreased significantly compared to the previous year, signaling a potential decrease in the company's ability to meet its short-term obligations.
It is important to further analyze the components of the quick ratio, such as cash, marketable securities, and accounts receivable, to gain a deeper understanding of Simulations Plus Inc's liquidity position and its ability to manage short-term financial obligations effectively.
Peer comparison
Aug 31, 2024