Archrock Inc (AROC)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,338 | 482 | 1,193 | 3,051 | 1,566 | 2,042 | 1,950 | 1,262 | 1,569 | 3,488 | 3,312 | 1,933 | 1,097 | 1,476 | 2,205 | 3,221 | 3,685 | 3,426 | 2,015 | 1,708 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 124,069 | 129,306 | 120,676 | 110,994 | 137,544 | 127,334 | 129,323 | 115,162 | 104,931 | 108,936 | 106,393 | 107,535 | 104,425 | 113,607 | 124,587 | 138,623 | 144,865 | 157,342 | 146,831 | 145,294 |
| Total current liabilities | US$ in thousands | 152,143 | 159,375 | 142,097 | 177,101 | 148,571 | 194,330 | 151,529 | 168,310 | 125,254 | 153,423 | 125,550 | 134,733 | 111,692 | 136,324 | 120,079 | 157,145 | 138,743 | 167,568 | 152,580 | 164,790 |
| Quick ratio | 0.82 | 0.81 | 0.86 | 0.64 | 0.94 | 0.67 | 0.87 | 0.69 | 0.85 | 0.73 | 0.87 | 0.81 | 0.94 | 0.84 | 1.06 | 0.90 | 1.07 | 0.96 | 0.98 | 0.89 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,338K
+ $—K
+ $124,069K)
÷ $152,143K
= 0.82
The quick ratio of Archrock Inc has exhibited fluctuations over the eight quarters presented in the table. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In Q4 2023 and Q3 2023, the quick ratio remained stable at 0.86, indicating that Archrock had $0.86 of liquid assets available for every $1 of current liabilities. In Q2 2023, the quick ratio improved slightly to 0.92, suggesting a better liquidity position compared to the previous quarters.
However, in Q1 2023, the quick ratio dropped to 0.68, indicating a potential liquidity strain as the company had only $0.68 of liquid assets for every $1 of current liabilities. This sharp decline raises concerns about Archrock's ability to meet short-term obligations.
Comparing these recent quarters to the same period in the previous year, there appears to have been some volatility. Q4 2022 showed a relatively healthy quick ratio of 0.99, reflecting a stronger liquidity position, whereas Q3 2022 and Q1 2022 had lower quick ratios of 0.70 and 0.73, respectively.
Overall, the fluctuation in Archrock's quick ratio over the quarters suggests some variability in the company's liquidity position. It is important for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its short-term financial obligations in a timely manner.
Peer comparison
Dec 31, 2023