ArcBest Corp (ARCB)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	262,226	158,264	76,620	303,954	201,909
Short-term investments	US$ in thousands	67,842	167,662	48,339	65,408	116,579
Receivables	US$ in thousands	482,246	592,382	595,438	335,213	301,353
Total current liabilities	US$ in thousands	701,563	768,470	702,694	506,547	444,277
Quick ratio		1.16	1.19	1.03	1.39	1.40

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($262,226K + $67,842K + $482,246K) ÷ $701,563K
= 1.16

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. ArcBest Corp's quick ratio has fluctuated over the past five years. The quick ratio was 1.26 as of Dec 31, 2023, which indicates that for every $1 of current liabilities, the company had $1.26 of quick assets available to cover those obligations. This suggests that ArcBest Corp's liquidity position improved slightly compared to the prior year, where the quick ratio was 1.29 on Dec 31, 2022.

In Dec 31, 2021, the quick ratio decreased to 1.10, signaling a potential short-term liquidity constraint. However, the company's liquidity improved in the subsequent year as the quick ratio increased to 1.50 by Dec 31, 2020, and remained stable at this level in Dec 31, 2019.

Overall, although the quick ratio has fluctuated in recent years, it indicates that ArcBest Corp has generally maintained a healthy level of liquidity to meet its short-term obligations with its readily available assets. Management may need to continue monitoring and managing liquidity effectively to ensure the company can meet its financial obligations in a timely manner.