Varex Imaging Corp (VREX)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 152,600 | 89,400 | 144,600 | 100,600 | 29,900 |
| Short-term investments | US$ in thousands | 41,300 | 14,500 | — | 51,000 | — |
| Receivables | US$ in thousands | 163,600 | 173,300 | 155,300 | 123,800 | 141,000 |
| Total current liabilities | US$ in thousands | 162,800 | 173,100 | 166,600 | 160,600 | 175,100 |
| Quick ratio | 2.20 | 1.60 | 1.80 | 1.71 | 0.98 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($152,600K
+ $41,300K
+ $163,600K)
÷ $162,800K
= 2.20
The quick ratio of Varex Imaging Corp has shown fluctuations over the past five years. As of September 30, 2023, the quick ratio stood at 2.20, indicating that the company had $2.20 in liquid assets available to cover each dollar of its current liabilities. This reflects a strong liquidity position, suggesting that Varex Imaging Corp has a healthy ability to meet its short-term obligations using its most liquid assets.
Comparing this to the previous years, we observe a general positive trend in the quick ratio from 2019 to 2023, indicating an improvement in the company's short-term liquidity position over time. The quick ratio increased from 0.98 in 2019 to 2.20 in 2023, demonstrating a significant enhancement in liquidity management.
The notable increase in the quick ratio from 2022 to 2023 further highlights an even stronger liquidity position in the most recent fiscal year. This improvement could signify more efficient management of current assets and liabilities, potentially reducing the company's risk of facing liquidity problems.
Overall, the quick ratio trend of Varex Imaging Corp showcases a positive liquidity picture, indicating a strengthened ability to meet its short-term financial obligations with liquid assets.
Peer comparison
Sep 30, 2023