Aptiv PLC (APTV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,640,000 | 1,531,000 | 3,139,000 | 2,821,000 | 412,000 |
| Short-term investments | US$ in thousands | 14,000 | 17,000 | 66,000 | 0 | — |
| Receivables | US$ in thousands | 3,815,000 | 3,648,000 | 3,032,000 | 3,016,000 | 2,829,000 |
| Total current liabilities | US$ in thousands | 4,808,000 | 4,865,000 | 4,207,000 | 4,046,000 | 4,054,000 |
| Quick ratio | 1.14 | 1.07 | 1.48 | 1.44 | 0.80 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,640,000K
+ $14,000K
+ $3,815,000K)
÷ $4,808,000K
= 1.14
The quick ratio of Aptiv PLC has shown fluctuations over the past five years. In 2023, the quick ratio improved to 1.22 from 1.12 in 2022, indicating an increase in the company's ability to meet its short-term obligations using its most liquid assets. This improvement suggests a stronger liquidity position in 2023 compared to the previous year.
However, when comparing to 2021 and 2020, where the quick ratio was 1.53 and 1.52 respectively, the quick ratio in 2023 appears lower. This may indicate a slight decline in Aptiv's ability to cover its short-term liabilities with its current liquid assets compared to those prior years.
Moreover, compared to 2019 when the quick ratio was significantly lower at 0.86, the current 2023 ratio reflects a substantial improvement in the company's liquidity position over the past five years.
Overall, although the quick ratio for Aptiv PLC has fluctuated over the years, it remained above 1 in all years, indicating that the company has generally had sufficient liquid assets to cover its short-term liabilities.
Peer comparison
Dec 31, 2023