Archrock Inc (AROC)

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	4,420	3,749	919	1,155	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
Short-term investments	US$ in thousands	—	—	—	2,676	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	132,478	149,019	115,351	105,295	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
Total current liabilities	US$ in thousands	188,604	194,661	133,192	153,246	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
Quick ratio		0.73	0.78	0.87	0.71	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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,420K + $—K + $132,478K) ÷ $188,604K
= 0.73

The quick ratio of Archrock Inc has shown fluctuation over the period from March 31, 2020 to December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

From March 31, 2020 to June 30, 2020, the quick ratio improved from 0.90 to 1.06, indicating an increase in the company's ability to cover its current liabilities with its quick assets. However, the ratio declined in the following quarters, reaching a low point of 0.64 on March 31, 2023.

Despite the fluctuations, the quick ratio generally stayed within a moderate range between 0.64 and 0.94 during the period under review. It peaked at 1.06 on June 30, 2020, suggesting a strong ability to meet short-term obligations, and hit a low point at 0.64 on March 31, 2023, indicating a potential liquidity challenge.

Overall, the trend in the quick ratio indicates some variability in Archrock Inc's short-term liquidity position, with a tendency to fluctuate within a moderate range over the period analyzed. It is important for investors and stakeholders to monitor the trend in the quick ratio to assess the company's ability to manage its short-term obligations effectively.