Seagate Technology PLC (STX)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,358,000 | 786,000 | 615,000 | 1,209,000 | 1,722,000 |
| Short-term investments | US$ in thousands | — | 2,000 | 2,000 | 2,000 | 2,000 |
| Receivables | US$ in thousands | 539,000 | 788,000 | 1,532,000 | 1,158,000 | 1,115,000 |
| Total current liabilities | US$ in thousands | 3,099,000 | 2,592,000 | 3,555,000 | 2,921,000 | 2,722,000 |
| Quick ratio | 0.61 | 0.61 | 0.60 | 0.81 | 1.04 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,358,000K
+ $—K
+ $539,000K)
÷ $3,099,000K
= 0.61
The quick ratio of Seagate Technology PLC has been relatively stable over the past five years, ranging from 0.60 to 1.04. The decreasing trend in the quick ratio from 2020 to 2022 might indicate a potential liquidity risk or a decrease in the company's ability to cover its short-term liabilities with its most liquid assets.
However, the quick ratio improved in 2021 and then remained constant in 2023 and 2024 at 0.61. This suggests that the company has maintained a consistent ability to meet its short-term obligations using its quick assets (such as cash, cash equivalents, and marketable securities).
It is important to note that a quick ratio below 1.0 may indicate a risk of liquidity issues, as the company may have difficulty meeting its current liabilities without selling inventory. Seagate Technology PLC should continue to monitor its liquidity position and ensure it has sufficient quick assets to cover short-term obligations.
Peer comparison
Jun 30, 2024