Aptiv PLC (APTV)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,573,000 | 1,640,000 | 1,531,000 | 3,139,000 | 2,821,000 |
| Short-term investments | US$ in thousands | 11,000 | 0 | 17,000 | 66,000 | 0 |
| Receivables | US$ in thousands | 3,557,000 | 3,815,000 | 3,648,000 | 3,032,000 | 3,016,000 |
| Total current liabilities | US$ in thousands | 5,131,000 | 4,808,000 | 4,865,000 | 4,207,000 | 4,046,000 |
| Quick ratio | 1.00 | 1.13 | 1.07 | 1.48 | 1.44 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,573,000K
+ $11,000K
+ $3,557,000K)
÷ $5,131,000K
= 1.00
The quick ratio of Aptiv PLC has shown some fluctuations over the years. In December 2020, the quick ratio was 1.44, indicating that the company had $1.44 of liquid assets available to cover each dollar of current liabilities. The ratio increased slightly to 1.48 by December 2021, suggesting an improvement in the company's liquidity position.
However, there was a notable decrease in the quick ratio to 1.07 by December 2022, which could be a cause for concern as it indicates a potential decline in the company's ability to meet its short-term obligations with its quick assets. The ratio improved slightly to 1.13 by December 2023, but it remained below the previous levels.
By December 2024, the quick ratio further decreased to 1.00, which means the company had exactly enough quick assets to cover its current liabilities. This suggests that Aptiv PLC may need to carefully manage its liquidity position to ensure it can meet its short-term obligations effectively.
Overall, while the company's quick ratio has shown some fluctuations, it is important for Aptiv PLC to closely monitor and manage its liquidity position to ensure it remains strong and can meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024