Avient Corp (AVNT)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 545,800 641,100 601,200 649,500 864,700
Short-term investments US$ in thousands
Receivables US$ in thousands 399,900 440,600 642,300 516,600 330,000
Total current liabilities US$ in thousands 773,600 869,400 940,600 801,000 702,500
Quick ratio 1.22 1.24 1.32 1.46 1.70

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($545,800K + $—K + $399,900K) ÷ $773,600K
= 1.22

The quick ratio of Avient Corp has shown a declining trend over the past five years, decreasing from 1.78 in 2019 to 1.37 in 2023. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

Although the current quick ratio of 1.37 in 2023 is still above the ideal threshold of 1, the downward trend over the years indicates a potential deterioration in the company's liquidity position. It suggests that Avient Corp may be becoming less capable of meeting its short-term obligations using its readily available assets.

Further analysis of the company's overall liquidity position and cash flow management is recommended to determine the underlying factors contributing to the declining quick ratio and assess the impact on the company's financial health.


Peer comparison

Dec 31, 2023