Woodward Inc (WWD)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 282,270 | 137,447 | 107,844 | 446,555 | 149,773 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 479,250 | 499,347 | 373,948 | 334,190 | 386,544 |
| Total current liabilities | US$ in thousands | 923,510 | 617,196 | 539,113 | 366,257 | 392,332 |
| Quick ratio | 0.82 | 1.03 | 0.89 | 2.13 | 1.37 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($282,270K
+ $—K
+ $479,250K)
÷ $923,510K
= 0.82
The quick ratio of Woodward Inc has fluctuated over the past five years. In 2024, the quick ratio stood at 0.82, indicating that the company may have difficulties meeting its short-term obligations with its most liquid assets alone. This is a decrease from the previous year, where the ratio was 1.03, suggesting a stronger ability to cover short-term liabilities.
The quick ratio was also lower in 2022 at 0.89 compared to 2021, when it was 2.13. This indicates that in 2022, Woodward Inc had a lower level of liquid assets relative to its current liabilities, potentially posing a liquidity risk. The significant decrease from 2021 to 2022 may be a point of concern for the company's ability to meet short-term obligations.
However, in 2020, the quick ratio was 1.37, showing a relatively healthier position in terms of liquidity compared to the following years. The downward trend in the quick ratio from 2020 to 2024 suggests that Woodward Inc may need to closely monitor its liquidity management in order to ensure it can meet its short-term obligations efficiently in the future.