Astec Industries Inc (ASTE)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 88,300 | 63,200 | 66,000 | 134,400 | 158,600 |
| Short-term investments | US$ in thousands | 2,500 | 5,700 | 3,900 | 8,600 | 4,300 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 271,700 | 299,000 | 274,000 | 225,300 | 170,300 |
| Quick ratio | 0.33 | 0.23 | 0.26 | 0.63 | 0.96 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($88,300K
+ $2,500K
+ $—K)
÷ $271,700K
= 0.33
The quick ratio of Astec Industries Inc has exhibited a declining trend over the five-year period from 2020 to 2024. Starting at 0.96 in December 2020, the ratio decreased to 0.63 by December 2021, further dropping to 0.26 by December 2022, and decreasing slightly to 0.23 by December 2023. However, in December 2024, there was a slight improvement to 0.33.
A quick ratio below 1.0 typically indicates that a company may have difficulty meeting its short-term obligations using its most liquid assets. In the case of Astec Industries Inc, the decreasing trend in the quick ratio suggests a potential weakening ability to cover its current liabilities with its quick assets over the years.
It is important for the company to closely monitor its liquidity position and consider strategies to improve its quick ratio to ensure it can efficiently meet its short-term financial obligations and maintain financial stability. Further analysis of the company's current assets, particularly its cash and near cash equivalents, may provide insights into the factors influencing this declining trend and help in developing appropriate measures to address any liquidity challenges.
Peer comparison
Dec 31, 2024