Arcosa Inc (ACA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 187,300 | 104,800 | 160,400 | 72,900 | 95,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 516,000 | 431,200 | 367,700 | 364,000 | 310,300 |
| Quick ratio | 0.36 | 0.24 | 0.44 | 0.20 | 0.31 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($187,300K
+ $—K
+ $—K)
÷ $516,000K
= 0.36
The quick ratio measures Arcosa Inc's ability to meet its short-term obligations using only its most liquid assets, excluding inventory.
Looking at the trend over the past five years, the quick ratio has fluctuated significantly. In December 31, 2020, the quick ratio stood at 0.31, indicating that Arcosa had $0.31 in liquid assets available to cover each dollar of its short-term liabilities.
However, by December 31, 2021, the quick ratio decreased to 0.20, suggesting a significant decline in liquidity in that year. This could imply potential difficulties in meeting short-term obligations without relying on inventory.
There was a notable improvement in the quick ratio by December 31, 2022, where it increased to 0.44, indicating a healthier position in terms of liquidity.
Subsequently, the quick ratio dropped again to 0.24 by December 31, 2023, demonstrating decreased liquidity compared to the previous year.
In the most recent year, December 31, 2024, the quick ratio rebounded to 0.36, but it still remains below the level observed in 2022. This suggests that while liquidity improved compared to 2023, there may still be room for further enhancement.
Overall, the fluctuating quick ratio trend of Arcosa Inc over the past five years indicates varying levels of liquidity management and the potential need for closer monitoring and management of short-term assets and liabilities. Further analysis of the underlying reasons for these fluctuations would be necessary to assess the company's overall financial health accurately.
Peer comparison
Dec 31, 2024