Advanced Drainage Systems Inc (WMS)
Quick ratio
| Mar 31, 2025 | Dec 31, 2024 | 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 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 463,319 | 488,859 | 613,020 | 541,637 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 314,011 | 247,940 | 357,636 | 369,256 | 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 |
| Total current liabilities | US$ in thousands | 398,396 | 388,090 | 467,337 | 492,927 | 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 |
| Quick ratio | 1.95 | 1.90 | 2.08 | 1.85 | 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 |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($463,319K
+ $—K
+ $314,011K)
÷ $398,396K
= 1.95
The quick ratio of Advanced Drainage Systems Inc has shown some fluctuations over the past few years. Starting from June 30, 2020, at 1.84, the ratio declined to 1.10 by June 30, 2021, indicating a potential decrease in the company's ability to meet its short-term obligations with its most liquid assets.
Subsequently, there was a further decrease to 0.89 by December 31, 2021, which could raise concerns about the company's liquidity position. However, the company improved its quick ratio to 1.96 by December 31, 2023, indicating a stronger ability to cover its current liabilities with its quick assets.
The quick ratio continued to improve, reaching 2.08 by September 30, 2024. This signifies an increase in the company's short-term liquidity and its capacity to meet its obligations using its liquid assets.
Overall, the trend in the quick ratio of Advanced Drainage Systems Inc shows variability but generally indicates a positive liquidity position, with the ratio mostly staying above the standard benchmark of 1.0 in recent periods, suggesting the company's ability to cover its short-term liabilities with its most liquid assets.