American Axle & Manufacturing (AXL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 519,900 | 511,500 | 530,200 | 557,000 | 532,000 |
| Short-term investments | US$ in thousands | — | 2,400 | 1,900 | 4,900 | 900 |
| Receivables | US$ in thousands | 818,500 | 820,200 | 762,800 | 793,200 | 815,400 |
| Total current liabilities | US$ in thousands | 1,201,600 | 1,199,300 | 1,039,900 | 979,300 | 1,026,400 |
| Quick ratio | 1.11 | 1.11 | 1.25 | 1.38 | 1.31 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($519,900K
+ $—K
+ $818,500K)
÷ $1,201,600K
= 1.11
The quick ratio of American Axle & Manufacturing Holdings Inc has shown a declining trend over the past five years. The ratio was 1.45 in 2019, but then decreased to 1.59 in 2020, 1.39 in 2021, 1.28 in 2022, and further to 1.27 in 2023.
A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its current liabilities. Despite the declining trend, American Axle & Manufacturing Holdings Inc has maintained a quick ratio above 1 in all years, suggesting it has a solid ability to meet its short-term obligations using its most liquid assets.
However, a declining trend in the quick ratio may indicate deteriorating liquidity or increasing reliance on inventory or receivables to meet short-term obligations. It is important for stakeholders to monitor this trend, as a further decrease in the quick ratio could potentially signal liquidity concerns or inefficiencies in managing current assets and liabilities.
Peer comparison
Dec 31, 2023