Alamo Group Inc (ALG)
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 | 51,919 | 113,534 | 112,061 | 109,320 | 47,016 | 75,308 | 75,894 | 84,277 | 42,115 | 89,189 | 85,630 | 105,265 | 50,195 | 93,515 | 82,002 | 84,425 | 42,311 | 60,279 | 48,190 | 39,023 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 362,061 | 378,857 | 379,612 | 363,843 | 318,497 | 305,161 | 308,399 | 297,066 | 239,636 | 245,583 | 263,186 | 247,022 | 215,462 | 223,047 | 233,780 | 255,651 | 250,744 | 249,911 | 275,314 | 274,703 |
| Total current liabilities | US$ in thousands | 213,926 | 219,329 | 214,845 | 204,248 | 190,506 | 192,934 | 189,616 | 198,516 | 192,564 | 195,726 | 184,615 | 172,407 | 157,295 | 157,680 | 133,723 | 162,719 | 162,874 | 120,163 | 117,155 | 114,894 |
| Quick ratio | 1.94 | 2.24 | 2.29 | 2.32 | 1.92 | 1.97 | 2.03 | 1.92 | 1.46 | 1.71 | 1.89 | 2.04 | 1.69 | 2.01 | 2.36 | 2.09 | 1.80 | 2.58 | 2.76 | 2.73 |
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 shown a stable trend over the past eight quarters, ranging from 1.97 to 2.36. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio consistently remained above 1.5 over the quarters, indicating that Alamo Group has a strong ability to cover its current liabilities with its quick assets (such as cash, marketable securities, and accounts receivable) without relying heavily on inventory.
The trend of the quick ratio increasing from Q4 2022 to Q2 2023, with slight fluctuations along the way, reflects improving liquidity and financial stability. This suggests that the company has been managing its short-term obligations effectively and maintaining a healthy liquidity position.
Overall, the quick ratio analysis indicates that Alamo Group Inc. has a strong liquidity position and should be able to meet its short-term financial obligations comfortably in the foreseeable future.
Peer comparison
Dec 31, 2023