Avient Corp (AVNT)
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 | 545,800 | 439,600 | 528,700 | 582,700 | 641,100 | 544,400 | 645,100 | 562,600 | 601,200 | 545,200 | 616,200 | 594,500 | 649,500 | 577,300 | 1,977,000 | 1,280,200 | 864,700 | 199,600 | 125,500 | 108,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 399,900 | 436,900 | 506,400 | 484,400 | 440,600 | 504,600 | 752,600 | 757,900 | 642,300 | 703,000 | 705,200 | 642,200 | 516,600 | 514,300 | 310,600 | 382,400 | 330,000 | 368,700 | 473,800 | 480,200 |
| Total current liabilities | US$ in thousands | 773,600 | 727,100 | 776,500 | 837,200 | 869,400 | 1,555,600 | 1,570,600 | 1,559,600 | 940,600 | 961,800 | 934,300 | 863,600 | 801,000 | 768,900 | 624,300 | 687,800 | 702,500 | 625,500 | 607,300 | 570,300 |
| Quick ratio | 1.22 | 1.21 | 1.33 | 1.27 | 1.24 | 0.67 | 0.89 | 0.85 | 1.32 | 1.30 | 1.41 | 1.43 | 1.46 | 1.42 | 3.66 | 2.42 | 1.70 | 0.91 | 0.99 | 1.03 |
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 consistent improvement over the past four quarters. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, increased from 0.76 in Q3 2022 to 1.48 in Q2 2023, indicating a significant strengthening of the company's liquidity position.
Although there was a slight dip in Q4 2022 with a quick ratio of 1.38, the ratio remained above 1, demonstrating that Avient Corp has an adequate level of liquid assets to cover its current liabilities. This trend continued in Q1 2023 and Q4 2023 with quick ratios of 1.42 and 1.37 respectively.
Overall, the consistent improvement in Avient Corp's quick ratio suggests that the company has been able to effectively manage its short-term liquidity and is in a strong financial position to meet its immediate payment obligations.
Peer comparison
Dec 31, 2023