Alamo Group Inc (ALG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 51,919 | 47,016 | 42,115 | 50,195 | 42,311 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 362,061 | 318,497 | 239,636 | 215,462 | 250,744 |
| Total current liabilities | US$ in thousands | 213,926 | 190,506 | 192,564 | 157,295 | 162,874 |
| Quick ratio | 1.94 | 1.92 | 1.46 | 1.69 | 1.80 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($51,919K
+ $—K
+ $362,061K)
÷ $213,926K
= 1.94
The quick ratio of Alamo Group Inc. has exhibited variability over the past five years, ranging from 1.51 to 1.99. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2023, the quick ratio improved to 1.99 from 1.97 in 2022, indicating that the company had a higher proportion of liquid assets relative to its current liabilities. This may suggest improved short-term liquidity and a stronger ability to meet its short-term obligations without relying on inventory.
The quick ratio was lowest in 2021 at 1.51, indicating a potential liquidity challenge in that year. However, the ratio recovered in subsequent years, with 1.74 in 2020 and 1.86 in 2019. This trend suggests that the company may have implemented strategies to enhance its liquidity position over time.
Overall, while the quick ratio fluctuated, the recent improvement in 2023 is a positive sign for Alamo Group Inc.'s short-term liquidity management. Investors and stakeholders may find comfort in the company's ability to cover its immediate liabilities with its readily available assets. It is important to continue monitoring the quick ratio in conjunction with other financial indicators to assess the company's overall financial health.
Peer comparison
Dec 31, 2023