Autoliv Inc (ALV)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 330,000 | 498,000 | 594,000 | 969,000 | 1,178,200 |
| Short-term investments | US$ in thousands | — | -97,000 | -1,000 | -470,000 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,633,000 | 4,035,000 | 3,642,000 | 2,821,000 | 3,146,900 |
| Quick ratio | 0.09 | 0.10 | 0.16 | 0.18 | 0.37 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($330,000K
+ $—K
+ $—K)
÷ $3,633,000K
= 0.09
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. Autoliv Inc's quick ratio has shown a declining trend over the past five years. In December 2020, the quick ratio was 0.37, indicating that the company had $0.37 in liquid assets available to cover each dollar of current liabilities. However, by December 2024, the quick ratio had decreased to 0.09, suggesting a significant decrease in the company's ability to meet its short-term obligations with its most liquid assets. This trend may raise concerns about Autoliv Inc's liquidity and ability to manage its short-term financial commitments effectively. Further analysis and monitoring of the company's liquidity position and management strategies would be advisable to understand the reasons behind the declining quick ratio and its potential implications for the company's financial health.
Peer comparison
Dec 31, 2024