Arch Resources Inc (ARCH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 287,807 | 236,059 | 325,194 | 187,492 | 153,020 |
| Short-term investments | US$ in thousands | 32,724 | 36,993 | 14,463 | 96,765 | 135,667 |
| Receivables | US$ in thousands | 273,922 | 237,399 | 324,904 | 111,369 | 168,625 |
| Total current liabilities | US$ in thousands | 367,961 | 426,879 | 522,340 | 290,096 | 310,980 |
| Quick ratio | 1.62 | 1.20 | 1.27 | 1.36 | 1.47 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($287,807K
+ $32,724K
+ $273,922K)
÷ $367,961K
= 1.62
The quick ratio of Arch Resources Inc has fluctuated over the past five years. In 2023, the quick ratio improved to 1.62 from 1.20 in 2022. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has strengthened. However, the quick ratio is still lower compared to 2019 and 2020, where it was at 1.47 and 1.36 respectively. Despite the fluctuations, a quick ratio above 1 suggests that Arch Resources Inc currently has an adequate level of quick assets to cover its current liabilities. The trend in the quick ratio should be monitored to assess the company's liquidity position and ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2023