What is the Quick Ratio and Explain your findings. 2017 2016 (In thousands, exce
ID: 2525846 • Letter: W
Question
What is the Quick Ratio and Explain your findings.
2017
2016
(In thousands, except
share data)
ASSETS
Current Assets
Cash and cash equivalents
$
81,377
$
68,038
Restricted cash and investments
44,932
17,133
Accounts receivable, less allowance for doubtful accounts of $4,574 and $3,664, respectively
389,916
356,255
Contract receivable, current portion
18,142
224,033
Prepaid expenses and other current assets
45,342
32,210
Total current assets
579,709
697,669
Restricted Cash and Investments
27,999
20,848
Property and Equipment, Net
2,078,123
1,897,241
Non-Current Contract Receivable
404,309
219,783
Assets Held for Sale
3,915
—
Deferred Income Tax Assets
26,277
30,039
Goodwill
778,951
615,433
Intangible Assets, Net
255,339
203,884
Other Non-Current Assets
72,286
64,512
Total Assets
$
4,226,908
$
3,749,409
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable
$
92,587
$
79,637
Accrued payroll and related taxes
71,732
55,260
Accrued expenses and other current liabilities
176,324
131,096
Current portion of capital lease obligations, long-term debt and non-recourse debt
28,920
238,065
Total current liabilities
369,563
504,058
Non-Current Deferred Income Tax Liabilities
8,757
—
Other Non-Current Liabilities
96,702
88,656
Capital Lease Obligations
6,059
7,431
Long-Term Debt
2,181,544
1,935,465
Non-Recourse Debt
365,364
238,842
Commitments and Contingencies (Note 17)
Shareholders’ Equity
Preferred stock, $0.01 par value, 30,000,000 shares authorized, none issued or outstanding
—
—
Common stock, $0.01 par value, 187,500,000 shares authorized, 124,008,303 and 112,547,544 issued and outstanding, respectively
1,240
1,125
Additional paid-in capital
1,190,906
891,993
Earnings in excess of distributions
31,541
112,763
Accumulated other comprehensive loss
(24,446
)
(30,825
)
Total shareholders’ equity attributable to The GEO Group, Inc.
1,199,241
975,056
Noncontrolling interests
(322
)
(99
)
Total shareholders’ equity
1,198,919
974,957
Total Liabilities and Shareholders’ Equity
$
4,226,908
$
3,749,409
2017
2016
(In thousands, except
share data)
ASSETS
Current Assets
Cash and cash equivalents
$
81,377
$
68,038
Restricted cash and investments
44,932
17,133
Accounts receivable, less allowance for doubtful accounts of $4,574 and $3,664, respectively
389,916
356,255
Contract receivable, current portion
18,142
224,033
Prepaid expenses and other current assets
45,342
32,210
Total current assets
579,709
697,669
Restricted Cash and Investments
27,999
20,848
Property and Equipment, Net
2,078,123
1,897,241
Non-Current Contract Receivable
404,309
219,783
Assets Held for Sale
3,915
—
Deferred Income Tax Assets
26,277
30,039
Goodwill
778,951
615,433
Intangible Assets, Net
255,339
203,884
Other Non-Current Assets
72,286
64,512
Total Assets
$
4,226,908
$
3,749,409
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable
$
92,587
$
79,637
Accrued payroll and related taxes
71,732
55,260
Accrued expenses and other current liabilities
176,324
131,096
Current portion of capital lease obligations, long-term debt and non-recourse debt
28,920
238,065
Total current liabilities
369,563
504,058
Non-Current Deferred Income Tax Liabilities
8,757
—
Other Non-Current Liabilities
96,702
88,656
Capital Lease Obligations
6,059
7,431
Long-Term Debt
2,181,544
1,935,465
Non-Recourse Debt
365,364
238,842
Commitments and Contingencies (Note 17)
Shareholders’ Equity
Preferred stock, $0.01 par value, 30,000,000 shares authorized, none issued or outstanding
—
—
Common stock, $0.01 par value, 187,500,000 shares authorized, 124,008,303 and 112,547,544 issued and outstanding, respectively
1,240
1,125
Additional paid-in capital
1,190,906
891,993
Earnings in excess of distributions
31,541
112,763
Accumulated other comprehensive loss
(24,446
)
(30,825
)
Total shareholders’ equity attributable to The GEO Group, Inc.
1,199,241
975,056
Noncontrolling interests
(322
)
(99
)
Total shareholders’ equity
1,198,919
974,957
Total Liabilities and Shareholders’ Equity
$
4,226,908
$
3,749,409
Explanation / Answer
Ans. Quick Ratio = Quick assets / Current liabilities 2016 665459 / 504058 1.32:1 2017 534367 / 369563 1.45:1 Calculation of Quick assets: Quick assets = Total current assets - Prepaid expenses 2016 697669 - 32210 665459 2017 579709 - 45342 534367 Total current liabilities: (Given) 2016 504058 2017 369563
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