Astec Industries Inc (ASTE)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 63,200 | 66,000 | 134,400 | 158,600 | 48,900 |
| Short-term investments | US$ in thousands | 5,700 | 3,900 | 8,600 | 22,300 | 19,198 |
| Receivables | US$ in thousands | 152,700 | 173,600 | 141,700 | 115,900 | 120,300 |
| Total current liabilities | US$ in thousands | 299,000 | 274,000 | 223,300 | 170,300 | 172,800 |
| Quick ratio | 0.74 | 0.89 | 1.27 | 1.74 | 1.09 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($63,200K
+ $5,700K
+ $152,700K)
÷ $299,000K
= 0.74
The quick ratio of Astec Industries Inc. has shown fluctuating trends over the past five years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio greater than 1 indicates that the company has enough liquid assets to cover its current liabilities.
In 2023, the quick ratio decreased to 0.88 from 1.05 in 2022, indicating a decline in the company's ability to quickly cover its short-term obligations. This may raise concerns about the company's liquidity position and its ability to meet immediate financial obligations.
Compared to the previous years, the quick ratio was at its lowest in 2023. The significant decrease from 2022 to 2023 could be attributed to changes in the composition of current assets and liabilities or potential challenges in managing liquidity effectively.
Further analysis into the reasons behind the decreasing trend in the quick ratio for Astec Industries Inc. is recommended to assess the company's overall financial health and ability to navigate short-term financial challenges.
Peer comparison
Dec 31, 2023