Advanced Energy Industries Inc (AEIS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,044,560 | 458,818 | 544,372 | 480,368 | 346,441 |
| Short-term investments | US$ in thousands | 163 | 2,128 | 2,296 | 2,654 | 2,614 |
| Receivables | US$ in thousands | 282,430 | 300,683 | 10,768 | 4,804 | -3,500 |
| Total current liabilities | US$ in thousands | 335,848 | 393,043 | 370,196 | 296,397 | 320,332 |
| Quick ratio | 3.95 | 1.94 | 1.51 | 1.65 | 1.08 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,044,560K
+ $163K
+ $282,430K)
÷ $335,848K
= 3.95
The quick ratio of Advanced Energy Industries Inc. has shown fluctuating trends over the past five years. In 2023, the quick ratio improved significantly to 4.10, indicating a strong liquidity position. This increase from 2.07 in 2022 suggests the company has ample liquid assets to cover its short-term obligations without relying heavily on inventory.
Looking back, the quick ratio was relatively stable around 2.23 in 2021 and 2.56 in 2020, indicating a consistent ability to meet short-term liabilities with quick assets. However, in 2019, the quick ratio was lower at 1.99, suggesting a slightly weaker liquidity position compared to the subsequent years.
Overall, Advanced Energy Industries Inc. appears to have improved its liquidity position significantly in 2023, which may indicate more efficient management of current assets and liabilities. It is essential to continue monitoring the quick ratio in the future to ensure the company maintains a healthy liquidity position to meet its financial obligations promptly.
Peer comparison
Dec 31, 2023