Autoliv Inc (ALV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 498,000 | 594,000 | 969,000 | 1,178,000 | 444,700 |
| Short-term investments | US$ in thousands | — | -1,000 | -470,000 | 200 | — |
| Receivables | US$ in thousands | 2,258,000 | 1,962,000 | 1,745,000 | 1,819,600 | 1,623,900 |
| Total current liabilities | US$ in thousands | 4,035,000 | 3,642,000 | 2,821,000 | 3,147,000 | 2,410,200 |
| Quick ratio | 0.68 | 0.70 | 0.80 | 0.95 | 0.86 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($498,000K
+ $—K
+ $2,258,000K)
÷ $4,035,000K
= 0.68
The quick ratio of Autoliv Inc. has shown a declining trend over the past five years, decreasing from 0.94 in 2019 to 0.73 in 2023. This indicates a weakening ability of the company to meet its short-term obligations using its most liquid assets. A quick ratio below 1 may raise concerns as it suggests that Autoliv Inc. may have difficulties in covering its current liabilities with its quick assets alone. However, it is important to note that the quick ratio of Autoliv Inc. has fluctuated within a range of 0.73 to 1.10 over the period, which may be reflective of varying operating and financial conditions. Further investigation into the composition of quick assets and current liabilities would provide additional insights into the liquidity position of the company and help assess its overall financial health.
Peer comparison
Dec 31, 2023