Avient Corp (AVNT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 544,500 | 545,800 | 641,100 | 601,200 | 649,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 756,100 | 773,600 | 869,400 | 946,300 | 804,600 |
| Quick ratio | 0.72 | 0.71 | 0.74 | 0.64 | 0.81 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($544,500K
+ $—K
+ $—K)
÷ $756,100K
= 0.72
The quick ratio of Avient Corp has shown some fluctuations over the past five years. As of December 31, 2020, the quick ratio was 0.81, indicating that the company had $0.81 of liquid assets to cover each $1 of current liabilities. However, by December 31, 2021, the quick ratio decreased to 0.64, suggesting a potential liquidity challenge as the ratio fell below 1.
In the following years, the quick ratio improved slightly, reaching 0.74 by December 31, 2022, 0.71 by December 31, 2023, and 0.72 by December 31, 2024. Although the quick ratio remained below the ideal value of 1 throughout these years, the gradual increase may indicate an effort to enhance liquidity position and better ability to meet short-term obligations.
Overall, Avient Corp's quick ratio trend signals fluctuations in its ability to cover immediate liabilities with liquid assets, highlighting the importance of monitoring liquidity management practices to ensure financial stability and solvency.
Peer comparison
Dec 31, 2024