Smith AO Corporation (AOS)
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 | 339,900 | 281,000 | 378,900 | 406,200 | 391,200 | 358,800 | 359,400 | 405,800 | 443,300 | 486,100 | 444,800 | 578,500 | 573,100 | 377,900 | 442,700 | 416,100 | 374,000 | 219,400 | 281,600 | 337,800 |
| Short-term investments | US$ in thousands | 23,500 | 60,800 | 30,800 | 89,800 | 90,600 | 58,300 | 100,000 | 173,600 | 188,100 | 199,100 | 137,100 | 87,000 | 116,500 | 131,100 | 126,000 | 135,600 | 177,400 | 294,400 | 296,200 | 295,500 |
| Receivables | US$ in thousands | 596,000 | 587,400 | 588,900 | 586,800 | 581,200 | 564,200 | 621,500 | 608,300 | 634,400 | 623,800 | 607,000 | 534,500 | 585,000 | 572,900 | 515,900 | 524,000 | 589,500 | 614,100 | 634,800 | 658,800 |
| Total current liabilities | US$ in thousands | 945,300 | 895,600 | 860,700 | 895,700 | 934,200 | 900,900 | 928,300 | 1,002,100 | 1,118,800 | 982,600 | 907,000 | 836,100 | 886,300 | 805,900 | 735,400 | 699,100 | 766,500 | 730,400 | 730,600 | 737,200 |
| Quick ratio | 1.01 | 1.04 | 1.16 | 1.21 | 1.14 | 1.09 | 1.16 | 1.19 | 1.13 | 1.33 | 1.31 | 1.44 | 1.44 | 1.34 | 1.47 | 1.54 | 1.49 | 1.54 | 1.66 | 1.75 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($339,900K
+ $23,500K
+ $596,000K)
÷ $945,300K
= 1.01
The quick ratio of A.O. Smith Corp. has shown some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities.
Looking at the data provided, we can see that the quick ratio ranged from 1.06 to 1.27 over the period. The highest quick ratio was observed in Q1 2023 at 1.27, indicating a strong liquidity position during that period. Conversely, the lowest quick ratio was seen in Q4 2023 at 1.06, which is still above the threshold of 1.
Overall, the quick ratio of A.O. Smith Corp. has remained consistently above 1 throughout the period, suggesting that the company has maintained a relatively healthy liquidity position and should be able to meet its short-term obligations comfortably. However, it is essential to monitor any trends or deviations in the quick ratio over time as a significant decrease could indicate potential liquidity challenges.
Peer comparison
Dec 31, 2023