Sonos Inc (SONO)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 169,732 | 220,231 | 274,855 | 640,101 | 407,100 |
| Short-term investments | US$ in thousands | 51,426 | — | — | — | — |
| Receivables | US$ in thousands | 44,513 | 67,583 | 101,206 | 100,779 | 54,935 |
| Total current liabilities | US$ in thousands | 366,153 | 354,218 | 535,639 | 476,130 | 393,015 |
| Quick ratio | 0.73 | 0.81 | 0.70 | 1.56 | 1.18 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($169,732K
+ $51,426K
+ $44,513K)
÷ $366,153K
= 0.73
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio is generally preferred as it indicates a stronger ability to cover short-term liabilities.
Analyzing Sonos Inc's quick ratio over the past five years, we observe fluctuations in the company's liquidity position. In particular, the quick ratio has ranged from 0.70 to 1.56 during this period.
In 2024, Sonos Inc's quick ratio stands at 0.73, indicating that the company has $0.73 in liquid assets available to cover each dollar of current liabilities. This represents a decrease compared to the previous year when the quick ratio was 0.81.
The declining trend in the quick ratio from 2023 to 2024 could suggest a potential weakening of Sonos Inc's ability to meet short-term obligations with its readily available assets. Further investigation into the company's current assets composition and management of short-term liabilities may be warranted to better understand the factors contributing to this decline.
Peer comparison
Sep 30, 2024