AdvanSix Inc (ASIX)

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	29,768	22,110	10,536	1,826	30,985	24,694	17,297	19,306	15,100	7,239	4,251	14,124	10,606	16,686	72,663	30,754	7,050	10,048	17,057	7,803
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	166,827	146,171	154,590	162,412	185,200	200,831	246,371	223,541	179,087	171,278	165,744	149,801	135,843	110,908	84,899	123,003	106,660	109,292	127,526	117,247
Total current liabilities	US$ in thousands	358,918	307,954	300,143	314,960	393,492	350,656	356,344	307,252	309,822	306,140	269,105	259,482	287,037	253,162	226,324	268,680	291,726	286,668	253,727	256,702
Quick ratio		0.55	0.55	0.55	0.52	0.55	0.64	0.74	0.79	0.63	0.58	0.63	0.63	0.51	0.50	0.70	0.57	0.39	0.42	0.57	0.49

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 a declining trend over the past eight quarters, from 0.81 in Q1 2022 to 0.58 in Q4 2023. This indicates that the company's ability to cover its short-term liabilities with its most liquid assets has been weakening. A quick ratio below 1 suggests that AdvanSix Inc may have difficulty meeting its short-term obligations without relying on selling inventory.

While a quick ratio of 0.58 in Q4 2023 is concerning, it is important to note that the ratio has fluctuated between 0.54 and 0.62 over the past year, indicating some volatility. It is recommended that AdvanSix Inc closely monitor and manage its liquidity position to ensure it has sufficient liquid assets to meet its short-term liabilities.