Axalta Coating Systems Ltd (AXTA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 593,000 | 700,000 | 645,200 | 840,600 | 1,360,900 |
| Short-term investments | US$ in thousands | — | 400 | 2,300 | — | 1,700 |
| Receivables | US$ in thousands | 1,248,000 | 1,260,000 | 1,067,400 | 937,500 | 869,800 |
| Total current liabilities | US$ in thousands | 1,354,000 | 1,428,000 | 1,384,700 | 1,334,900 | 1,180,900 |
| Quick ratio | 1.36 | 1.37 | 1.24 | 1.33 | 1.89 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($593,000K
+ $—K
+ $1,248,000K)
÷ $1,354,000K
= 1.36
The quick ratio of Axalta Coating Systems Ltd has shown a gradual decrease over the past five years, starting at 1.89 on December 31, 2020, and declining to 1.33 on December 31, 2021, further dropping to 1.24 on December 31, 2022. However, there was a slight improvement to 1.37 on December 31, 2023, followed by a relatively stable ratio of 1.36 on December 31, 2024.
A quick ratio above 1 suggests that the company has an adequate level of liquid assets to cover its short-term liabilities. Despite the fluctuation seen in recent years, Axalta Coating Systems Ltd has generally maintained a healthy quick ratio, indicating its ability to meet its short-term obligations efficiently. It is important for stakeholders to continue monitoring this ratio to ensure the company's liquidity position remains stable in the future.
Peer comparison
Dec 31, 2024