Varex Imaging Corp (VREX)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 141,300 | 152,600 | 118,500 | 104,400 | 81,500 | 89,400 | 99,600 | 115,100 | 157,800 | 144,600 | 128,300 | 111,100 | 105,500 | 100,600 | 87,400 | 24,200 | 30,000 | 29,900 | 28,500 | 31,000 |
| Short-term investments | US$ in thousands | 52,200 | 41,300 | 33,500 | 13,700 | 16,700 | 14,500 | — | — | — | — | — | 49,000 | 49,000 | 51,000 | 50,000 | — | — | — | — | — |
| Receivables | US$ in thousands | 139,600 | 163,600 | 163,300 | 159,500 | 157,900 | 173,300 | — | — | 127,100 | 155,300 | — | — | — | 123,800 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 150,100 | 162,800 | 158,600 | 157,200 | 157,400 | 173,100 | 172,300 | 167,100 | 149,900 | 166,600 | 186,200 | 146,300 | 152,500 | 160,600 | 191,900 | 198,100 | 190,900 | 175,100 | 171,200 | 156,300 |
| Quick ratio | 2.22 | 2.20 | 1.99 | 1.77 | 1.63 | 1.60 | 0.58 | 0.69 | 1.90 | 1.80 | 0.69 | 1.09 | 1.01 | 1.71 | 0.72 | 0.12 | 0.16 | 0.17 | 0.17 | 0.20 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($141,300K
+ $52,200K
+ $139,600K)
÷ $150,100K
= 2.22
The quick ratio of Varex Imaging Corp has exhibited fluctuations over the past five years. In the most recent quarter, as of December 31, 2023, the quick ratio stands at 2.22, indicating that the company has $2.22 in liquid assets for every $1 of current liabilities. This implies a healthy liquidity position, which may allow the company to meet its short-term obligations comfortably.
It is worth noting that the quick ratio has generally trended upward since the first quarter of 2020, displaying an improving liquidity position over this period. However, there have been instances of volatility in the quick ratio, such as the significant drop in the second quarter of 2022 to 0.58, which could be a cause for concern regarding the company's ability to cover its short-term liabilities with its quick assets alone.
Overall, the recent quick ratio of 2.22 as of December 31, 2023, reflects a strong liquidity position for Varex Imaging Corp, indicating its ability to meet its short-term obligations effectively. However, investors and stakeholders should continue to monitor the company's liquidity position and trends in the quick ratio over time to assess its financial health and risk levels.
Peer comparison
Dec 31, 2023