John Wiley & Sons (WLY)
Quick ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 83,249 | 106,714 | 100,397 | 93,795 | 202,464 |
| Short-term investments | US$ in thousands | — | 6,400 | 900 | — | — |
| Receivables | US$ in thousands | 224,198 | 310,121 | 331,960 | 311,571 | 309,384 |
| Total current liabilities | US$ in thousands | 873,282 | 895,553 | 969,419 | 988,972 | 927,269 |
| Quick ratio | 0.35 | 0.47 | 0.45 | 0.41 | 0.55 |
April 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($83,249K
+ $—K
+ $224,198K)
÷ $873,282K
= 0.35
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. John Wiley & Sons' quick ratio has been fluctuating over the past five years.
The quick ratio decreased from 0.55 in 2020 to 0.35 in 2024. This decline indicates a decrease in the company's ability to meet its short-term obligations using its most liquid assets. The ratio being below 1 suggests that John Wiley & Sons may have challenges in meeting its short-term liabilities with its current quick assets alone.
While a fluctuating quick ratio can be normal for some companies, it is essential for John Wiley & Sons to monitor its liquidity position closely. A quick ratio below 1 may raise concerns among creditors and investors about the company's short-term financial health and its ability to manage liquidity effectively.
Further analysis of the company's cash flow management, working capital efficiency, and overall financial health would provide a more comprehensive understanding of the factors contributing to the fluctuations in the quick ratio over the years.
Peer comparison
Apr 30, 2024