Advanced Drainage Systems Inc (WMS)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 490,163 | 217,128 | 20,125 | 195,009 | 174,233 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 323,576 | 306,945 | 341,753 | 236,191 | 200,028 |
| Total current liabilities | US$ in thousands | 439,622 | 378,802 | 391,241 | 318,270 | 238,213 |
| Quick ratio | 1.85 | 1.38 | 0.92 | 1.35 | 1.57 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($490,163K
+ $—K
+ $323,576K)
÷ $439,622K
= 1.85
The quick ratio of Advanced Drainage Systems Inc has shown fluctuations over the past five years. In 2020, the quick ratio was 1.57, indicating that the company had $1.57 of liquid assets available to cover each dollar of current liabilities. The ratio improved to 1.35 in 2021 before increasing significantly to 0.92 in 2022. This decrease may suggest potential liquidity concerns as the company had $0.92 of liquid assets for every dollar of current liabilities. However, in 2023, the quick ratio improved to 1.38, showing a better ability to meet short-term obligations using its quick assets.
The most recent data for March 31, 2024, shows a quick ratio of 1.85, the highest among the five years analyzed. This indicates a notable improvement in the liquidity position of the company, with $1.85 of quick assets available for each dollar of current liabilities. Overall, the trend in the quick ratio for Advanced Drainage Systems Inc has been volatile but has demonstrated improvement in recent years, suggesting better ability to meet its short-term obligations with liquid assets.