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.