Advanced Energy Industries Inc (AEIS)
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 | 1,044,560 | 985,931 | 455,252 | 461,665 | 458,818 | 409,053 | 372,685 | 521,236 | 544,372 | 547,923 | 507,176 | 509,910 | 480,368 | 428,977 | 380,637 | 352,540 | 346,441 | 340,402 | 359,070 | 351,149 |
| Short-term investments | US$ in thousands | 163 | 155 | 175 | 164 | 2,128 | 2,120 | — | 2,282 | 2,296 | 2,833 | 2,828 | 2,854 | 2,654 | 2,601 | 2,729 | 2,490 | 2,614 | 747 | 746 | 2,516 |
| Receivables | US$ in thousands | 282,430 | — | — | — | 300,683 | — | — | — | 10,768 | 19,005 | 15,075 | 5,321 | 4,804 | 13,042 | -2,615 | -5,996 | -3,500 | -1,707 | 2,566 | -170 |
| Total current liabilities | US$ in thousands | 335,848 | 314,812 | 303,430 | 384,260 | 393,043 | 432,955 | 389,021 | 363,395 | 370,196 | 387,288 | 377,396 | 326,873 | 296,397 | 336,520 | 342,870 | 303,774 | 320,332 | 355,897 | 96,497 | 112,050 |
| Quick ratio | 3.95 | 3.13 | 1.50 | 1.20 | 1.94 | 0.95 | 0.96 | 1.44 | 1.51 | 1.47 | 1.39 | 1.58 | 1.65 | 1.32 | 1.11 | 1.15 | 1.08 | 0.95 | 3.76 | 3.15 |
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 variability over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations using its quick assets such as cash, marketable securities, and accounts receivable.
In Q4 2023, the quick ratio was 4.10, indicating that the company had $4.10 in quick assets for every $1 of current liabilities, signifying a strong ability to cover short-term obligations. This ratio was slightly lower in Q3 2023 at 4.16, but remained at a robust level.
The quick ratio dropped significantly in Q2 2023 to 2.51 and further to 2.10 in Q1 2023. These lower ratios suggest a potential strain on the company's ability to quickly meet its short-term obligations with liquid assets. It is important to closely monitor the trend of decreasing quick ratio over these two quarters.
Comparing the Q4 2023 quick ratio to the same quarter in the previous year, there has been a notable improvement from 2.07 in Q4 2022 to 4.10 in Q4 2023, indicating a strengthened liquidity position.
While the quick ratios in Q3 and Q2 2022 were slightly lower at 1.78, they have shown consistency with the current quick ratios seen in Q1 and Q2 2023. Q1 2022 had a quick ratio of 2.24, higher than the ratios in the subsequent quarters.
Overall, the recent quick ratios of Advanced Energy Industries Inc. reflect a strong liquidity position, with Q4 2023 standing out as particularly robust. However, the fluctuations in the quick ratio over the past quarters highlight the importance of continued monitoring to ensure the company's ability to meet short-term financial obligations remains solid.
Peer comparison
Dec 31, 2023