ArcBest Corp (ARCB)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	127,444	262,226	158,264	76,620	303,954
Short-term investments	US$ in thousands	29,759	67,842	167,662	48,339	65,408
Receivables	US$ in thousands	430,893	482,246	592,382	595,438	335,213
Total current liabilities	US$ in thousands	665,985	701,563	768,470	702,694	506,547
Quick ratio		0.88	1.16	1.19	1.03	1.39

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($127,444K + $29,759K + $430,893K) ÷ $665,985K
= 0.88

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at ArcBest Corp's quick ratio over the past five years, we see a fluctuating trend.

As of December 31, 2020, the quick ratio was strong at 1.39, indicating that ArcBest Corp had $1.39 in liquid assets available to cover each $1 of current liabilities. However, by December 31, 2024, the quick ratio had decreased to 0.88, signaling a potential liquidity concern as the company had $0.88 in liquid assets for every $1 of current liabilities.

Throughout the period, there were fluctuations in the quick ratio, with the ratio falling below 1 in 2024. A quick ratio below 1 may indicate that ArcBest Corp could potentially have difficulty meeting its short-term obligations using only its most liquid assets.

It is important for investors and stakeholders to monitor the quick ratio closely, as a declining trend could signal liquidity challenges for the company. Further analysis of ArcBest Corp's financial health and cash management practices may be necessary to understand the reasons behind the fluctuations in the quick ratio.