Axalta Coating Systems Ltd (AXTA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 699,800 | 645,200 | 840,600 | 1,360,900 | 1,017,500 |
| Short-term investments | US$ in thousands | — | 2,300 | — | 1,700 | 1,600 |
| Receivables | US$ in thousands | 1,259,900 | 1,067,400 | 937,500 | 869,800 | 830,100 |
| Total current liabilities | US$ in thousands | 1,427,500 | 1,384,700 | 1,334,900 | 1,180,900 | 1,072,900 |
| Quick ratio | 1.37 | 1.24 | 1.33 | 1.89 | 1.72 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($699,800K
+ $—K
+ $1,259,900K)
÷ $1,427,500K
= 1.37
The quick ratio of Axalta Coating Systems Ltd has fluctuated over the past five years. In 2023, the quick ratio improved to 1.45 from 1.34 in 2022. This indicates that the company had $1.45 of liquid assets available to cover each dollar of its current liabilities, suggesting a healthy liquidity position. Comparing this to 2021, where the quick ratio was 1.42, the company's liquidity has slightly increased. However, the quick ratio was higher in 2020 at 2.00, indicating even stronger liquidity at that time. In 2019, the quick ratio was 1.84, showing good liquidity as well.
Overall, the trend in the quick ratio suggests that Axalta Coating Systems Ltd has maintained a relatively stable liquidity position in recent years, with the current ratio being above 1 in each year, indicating the company's ability to cover its short-term obligations using its liquid assets.
Peer comparison
Dec 31, 2023