Smith AO Corporation (AOS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 239,600 | 339,900 | 391,200 | 443,300 | 573,100 |
| Short-term investments | US$ in thousands | 36,500 | 23,500 | 90,600 | 188,100 | 116,500 |
| Receivables | US$ in thousands | 541,400 | 596,000 | 581,200 | 634,400 | 585,000 |
| Total current liabilities | US$ in thousands | 897,200 | 945,300 | 934,200 | 1,118,800 | 886,300 |
| Quick ratio | 0.91 | 1.01 | 1.14 | 1.13 | 1.44 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($239,600K
+ $36,500K
+ $541,400K)
÷ $897,200K
= 0.91
The quick ratio of Smith AO Corporation has fluctuated over the past five years, starting at 1.44 on December 31, 2020, and gradually decreasing to 0.91 on December 31, 2024. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities. However, the decreasing trend over the years may raise concerns about the company's liquidity position. It is important for the company to closely monitor its liquidity management and ensure it maintains a healthy quick ratio to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024