Arcosa Inc (ACA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 104,800 | 160,400 | 72,900 | 95,800 | 240,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 357,100 | 334,200 | 310,800 | 260,200 | 200,000 |
| Total current liabilities | US$ in thousands | 431,200 | 367,700 | 364,000 | 310,300 | 284,000 |
| Quick ratio | 1.07 | 1.35 | 1.05 | 1.15 | 1.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($104,800K
+ $—K
+ $357,100K)
÷ $431,200K
= 1.07
The quick ratio of Arcosa Inc has displayed some fluctuations over the past five years. In 2019, the quick ratio was at its highest at 1.67, indicating a strong ability to meet short-term obligations with liquid assets. However, there was a noticeable decline in the quick ratio in 2020 to 1.25, which may suggest a slight decrease in the company's ability to cover its current liabilities with its most liquid assets.
Subsequently, the quick ratio saw a slight increase in 2021 to 1.22, but still remained below the levels seen in 2019. The ratio then experienced a significant improvement in 2022, reaching 1.47, indicating a better ability to cover short-term obligations with liquid assets compared to the previous year.
In 2023, the quick ratio decreased to 1.18, signaling a potential reduction in the company's liquidity position compared to the previous year. It is important to note that while the quick ratio has fluctuated over the years, it generally remains above 1, suggesting that Arcosa Inc typically has enough liquid assets to cover its short-term liabilities.
Overall, the trend in the quick ratio indicates some variability in Arcosa Inc's short-term liquidity position, which may warrant further investigation into the company's current assets composition and management of working capital.
Peer comparison
Dec 31, 2023