Arcosa Inc (ACA)
Quick ratio
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 104,800 | 155,300 | 197,900 | 149,200 | 160,400 | 112,200 | 77,000 | 88,600 | 72,900 | 66,100 | 100,300 | 81,900 | 95,800 | 189,000 | 148,400 | 200,700 | 240,400 | 127,500 | 83,300 | 118,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 357,100 | 389,600 | 386,500 | 393,600 | 334,200 | 326,100 | 350,100 | 373,700 | 310,800 | 364,200 | 314,300 | 289,100 | 260,200 | 232,900 | 217,700 | 238,100 | 200,000 | 213,400 | 228,700 | 206,200 |
| Total current liabilities | US$ in thousands | 431,200 | 405,100 | 420,800 | 380,400 | 367,700 | 423,400 | 416,400 | 403,700 | 364,000 | 389,400 | 353,000 | 312,200 | 310,300 | 312,200 | 285,900 | 279,000 | 284,000 | 223,800 | 203,100 | 245,800 |
| Quick ratio | 1.07 | 1.35 | 1.39 | 1.43 | 1.35 | 1.04 | 1.03 | 1.15 | 1.05 | 1.11 | 1.17 | 1.19 | 1.15 | 1.35 | 1.28 | 1.57 | 1.55 | 1.52 | 1.54 | 1.32 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 indicates that a company has just enough liquid assets to cover its current liabilities.
Arcosa Inc's quick ratio has fluctuated over the past eight quarters, ranging from a low of 1.10 to a high of 1.54. The quick ratio has generally been above 1, indicating that the company has been able to meet its short-term obligations using its current liquid assets. A quick ratio above 1 is considered favorable as it suggests that the company is not overly reliant on inventory to meet its short-term liabilities.
In Q4 2023, the quick ratio decreased to 1.18 from 1.46 in the previous quarter, Q3 2023. This decrease may indicate that Arcosa Inc's ability to cover its short-term liabilities with its most liquid assets has slightly weakened. It would be important to monitor this trend in the coming quarters to see if it is a sustained decline or a temporary fluctuation.
Overall, Arcosa Inc's quick ratio provides insight into the company's liquidity position and ability to handle short-term financial obligations. The trend in the quick ratio should be analyzed in conjunction with other financial metrics to get a comprehensive view of the company's financial health.
Peer comparison
Dec 31, 2023