Avantor Inc (AVTR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	262,900	372,900	301,700	286,600	186,700
Short-term investments	US$ in thousands	16,600	26,200	—	—	—
Receivables	US$ in thousands	1,150,200	1,218,400	1,222,100	1,113,300	988,800
Total current liabilities	US$ in thousands	1,480,300	1,658,800	1,450,800	1,242,700	1,074,500
Quick ratio		0.97	0.98	1.05	1.13	1.09

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($262,900K + $16,600K + $1,150,200K) ÷ $1,480,300K
= 0.97

The quick ratio of Avantor Inc has exhibited a slight decreasing trend over the past five years, from 1.09 in 2019 to 0.97 in 2023. This ratio measures the company's ability to cover its short-term obligations with its most liquid assets, excluding inventory. A quick ratio of less than 1 indicates that the company may have difficulty meeting its current liabilities using only its most liquid assets. Therefore, Avantor Inc's current quick ratio of 0.97 in 2023 suggests a slight decrease in its short-term liquidity and may warrant further analysis to assess the company's ability to meet its near-term financial obligations.