Sonos Inc (SONO)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 220,231 | 274,855 | 640,101 | 407,100 | 338,641 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 67,583 | 101,206 | 100,779 | 54,935 | 102,743 |
| Total current liabilities | US$ in thousands | 354,218 | 535,639 | 476,130 | 393,015 | 402,474 |
| Quick ratio | 0.81 | 0.70 | 1.56 | 1.18 | 1.10 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($220,231K
+ $—K
+ $67,583K)
÷ $354,218K
= 0.81
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 indicates better short-term liquidity and financial strength.
Analyzing the quick ratio of Sonos Inc over the past five years reveals a fluctuating trend. The quick ratio decreased from 1.14 in 2019 to 0.88 in 2023, indicating a potential decrease in the company's ability to cover its current liabilities with its most liquid assets.
While the quick ratio improved to 1.62 in 2021, signaling a strong position to meet short-term obligations, it declined to 0.77 in 2022 and further to 0.88 in 2023, indicating a potential strain on the company's short-term liquidity.
This fluctuation could be a cause for concern, as a consistently low quick ratio may indicate a higher risk of financial distress or an inability to meet short-term obligations. However, it is important to consider additional financial metrics and qualitative factors to gain a comprehensive understanding of Sonos Inc's overall financial health.
Peer comparison
Sep 30, 2023