Vestis Corporation (VSTS)
Quick ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 31,010 | 29,098 | 30,659 | 48,857 | 36,051 | 30,000 | 30,000 | -23,736 | 23,736 | — |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | 47,472 | — | — |
| Receivables | US$ in thousands | 177,271 | 409,926 | 405,954 | 403,265 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 456,102 | 429,792 | 400,154 | 393,805 | 395,525 | 367,298 | 379,244 | 368,724 | 402,195 | — |
| Quick ratio | 0.46 | 1.02 | 1.09 | 1.15 | 0.09 | 0.08 | 0.08 | 0.06 | 0.06 | — |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($31,010K
+ $—K
+ $177,271K)
÷ $456,102K
= 0.46
The quick ratio, also known as the acid-test ratio, provides insight into a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty covering its short-term liabilities with its current liquid assets.
Analyzing Vestis Corporation's quick ratio over the past quarters, we observe fluctuations in the company's ability to meet its short-term obligations. The quick ratio stood at 0.46 as of September 30, 2024, which suggests a decline in liquidity compared to the previous quarter. While the quick ratio improved significantly from the low of 0.06 in December 2022 to 1.15 in December 2023, it has been volatile in recent quarters.
The quick ratio of 0.46 as of September 30, 2024, indicates that Vestis Corporation may face challenges in covering its short-term liabilities with its current quick assets. Further analysis of the components contributing to the quick ratio, such as cash, marketable securities, and accounts receivable, would provide a more in-depth understanding of the company's liquidity position. It is essential for Vestis Corporation to closely monitor its liquidity and manage its current assets effectively to ensure it can meet its short-term financial obligations.
Peer comparison
Sep 30, 2024