AdvanSix Inc (ASIX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 29,768 | 30,985 | 15,100 | 10,606 | 7,050 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 166,827 | 185,200 | 179,087 | 135,843 | 106,660 |
| Total current liabilities | US$ in thousands | 358,918 | 393,492 | 309,822 | 287,037 | 291,726 |
| Quick ratio | 0.55 | 0.55 | 0.63 | 0.51 | 0.39 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($29,768K
+ $—K
+ $166,827K)
÷ $358,918K
= 0.55
The quick ratio of AdvanSix Inc has shown some variability over the past five years, ranging from 0.41 to 0.65. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio is 0.58, indicating that for every $1 of current liabilities, the company has $0.58 of quick assets available to cover those obligations. This suggests that AdvanSix Inc may face some challenges in meeting its short-term liabilities with its current level of liquid assets.
Comparing this to previous years, the quick ratio has been relatively consistent, with minor fluctuations. The ratio was strongest in 2021 at 0.65, which indicates an improvement in the company's short-term liquidity position compared to other years. However, in 2019, the quick ratio was at its lowest at 0.41, reflecting a weaker liquidity position at that time.
Overall, while the quick ratio of AdvanSix Inc has fluctuated over the years, it is essential for the company to maintain a healthy liquidity position to ensure it can comfortably meet its short-term obligations. Further analysis of the company's current asset composition and liabilities structure would provide a more in-depth understanding of its liquidity management capabilities.
Peer comparison
Dec 31, 2023