ArcBest Corp (ARCB)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	127,444	150,461	215,590	172,855	262,226	251,503	187,286	203,319	158,264	155,531	127,058	64,108	76,620	408,207	362,619	301,542	303,954	267,645	406,290	352,165
Short-term investments	US$ in thousands	29,759	40,639	44,865	68,065	67,842	89,326	153,116	162,487	167,662	145,758	76,802	37,024	48,339	60,289	59,967	59,316	65,408	83,411	167,719	178,810
Receivables	US$ in thousands	430,893	436,108	441,357	445,106	482,246	480,474	440,730	481,925	592,382	638,564	678,284	698,309	595,438	438,833	373,782	358,008	335,213	338,224	289,947	294,059
Total current liabilities	US$ in thousands	665,985	665,568	645,850	618,575	701,563	668,374	641,266	688,043	768,470	757,372	748,169	740,111	702,694	615,676	560,260	500,742	506,547	497,516	439,652	422,853
Quick ratio		0.88	0.94	1.09	1.11	1.16	1.23	1.22	1.23	1.19	1.24	1.18	1.08	1.03	1.47	1.42	1.44	1.39	1.39	1.97	1.95

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 of ArcBest Corp, a measure of its short-term liquidity, has shown some fluctuation over the period under review. Starting at a strong 1.95 on March 31, 2020, the ratio increased slightly to 1.97 by June 30, 2020. However, there was a notable decline in the quick ratio to 1.39 by September 30, 2020 and this level was maintained until the end of the year.

In the subsequent periods, there were some improvements in the quick ratio, with values ranging between 1.42 and 1.47 until June 30, 2021. However, by the end of December 2021, the quick ratio decreased to 1.03, marking a significant decline. The ratio showed some recovery in the following periods, with values hovering around 1.08 to 1.24 until September 30, 2022.

From September 30, 2022, the quick ratio began to show a declining trend, falling to 0.88 by December 31, 2024. This decreasing trend continued in the subsequent periods, reaching its lowest point of 0.88 by December 31, 2024.

Overall, the downward trend in the quick ratio from the latter half of 2022 to the end of 2024 indicates potential liquidity challenges for ArcBest Corp in the short term. It may suggest a decreasing ability to meet its short-term liabilities with its most liquid assets. Management should closely monitor the company's liquidity position and take proactive steps to improve it if necessary.