Advanced Drainage Systems Inc (WMS)
Quick ratio
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 490,163 | 560,744 | 470,409 | 366,104 | 217,128 | 426,690 | 457,357 | 463,696 | 20,125 | 22,173 | 14,005 | 142,833 | 195,009 | 223,996 | 203,883 | 235,210 | 174,233 | 98,312 | 54,207 | 9,357 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 323,576 | 240,810 | 352,562 | 342,338 | 306,945 | 242,485 | 387,952 | 427,620 | 341,753 | 303,140 | 361,466 | 303,736 | 236,191 | 188,744 | 260,180 | 241,830 | 200,028 | 156,973 | 250,470 | 231,829 |
| Total current liabilities | US$ in thousands | 439,622 | 409,125 | 427,867 | 419,587 | 378,802 | 370,280 | 439,300 | 504,758 | 391,241 | 364,084 | 413,839 | 407,450 | 318,270 | 277,559 | 282,491 | 258,901 | 238,213 | 222,085 | 241,348 | 243,983 |
| Quick ratio | 1.85 | 1.96 | 1.92 | 1.69 | 1.38 | 1.81 | 1.92 | 1.77 | 0.92 | 0.89 | 0.91 | 1.10 | 1.35 | 1.49 | 1.64 | 1.84 | 1.57 | 1.15 | 1.26 | 0.99 |
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 some fluctuations over the past 20 quarters. It has ranged from as low as 0.89 to as high as 1.96, with the most recent value reported at 1.85.
A Quick Ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities. A higher Quick Ratio suggests a healthier liquidity position, as the company has more liquid assets relative to its current liabilities.
The company experienced a significant improvement in its Quick Ratio from Q1 2022 to Q3 2023, demonstrating better liquidity management during that period. However, the Quick Ratio dipped in the subsequent quarters, albeit remaining above 1, indicating the company still has a strong ability to meet its short-term obligations.
Overall, the Quick Ratio trend of Advanced Drainage Systems Inc indicates that the company has maintained a relatively stable liquidity position over the past few quarters, which is a positive sign for its short-term financial health.