Axalta Coating Systems Ltd (AXTA)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 593,000 | 567,000 | 840,000 | 624,000 | 700,000 | 606,000 | 518,000 | 512,000 | 645,200 | 517,400 | 500,200 | 576,200 | 840,600 | 627,700 | 1,230,900 | 1,266,900 | 1,360,900 | 1,341,300 | 1,123,600 | 657,200 |
| Short-term investments | US$ in thousands | — | — | — | — | 400 | 800 | 1,200 | 100 | 2,300 | 7,100 | 4,500 | — | — | — | — | — | 1,700 | — | — | — |
| Receivables | US$ in thousands | 1,248,000 | 1,298,000 | 1,268,000 | 1,242,000 | 1,260,000 | 1,301,100 | 1,271,100 | 1,169,600 | 1,067,400 | 1,106,900 | 1,100,600 | 1,029,800 | 937,500 | 1,050,100 | 1,035,700 | 902,300 | 869,800 | 824,200 | 664,000 | 777,600 |
| Total current liabilities | US$ in thousands | 1,354,000 | 1,422,000 | 1,335,000 | 1,332,000 | 1,428,000 | 1,358,300 | 1,329,200 | 1,279,700 | 1,384,700 | 1,349,700 | 1,333,400 | 1,345,000 | 1,334,900 | 1,276,600 | 1,216,200 | 1,190,100 | 1,180,900 | 1,065,200 | 860,900 | 1,007,200 |
| Quick ratio | 1.36 | 1.31 | 1.58 | 1.40 | 1.37 | 1.40 | 1.35 | 1.31 | 1.24 | 1.21 | 1.20 | 1.19 | 1.33 | 1.31 | 1.86 | 1.82 | 1.89 | 2.03 | 2.08 | 1.42 |
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 displayed some fluctuations over the past few years, ranging from a low of 1.19 as of March 31, 2022, to a high of 2.08 as of June 30, 2020. Generally, the quick ratio indicates the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 suggests that the company has an adequate level of liquid assets to cover its current liabilities.
During the period under review, the quick ratio has mostly remained above 1, indicating that Axalta Coating Systems Ltd has had sufficient liquid assets to meet its short-term obligations. However, there have been periods where the quick ratio dipped below 1, such as the values of 1.31 as of September 30, 2021, and 1.20 as of June 30, 2022, which may raise concerns about the company's liquidity position during those times.
Overall, the trend in Axalta Coating Systems Ltd's quick ratio indicates that the company has managed to maintain a relatively stable liquidity position, with the ratio hovering around 1.40 in recent periods. Analysts may want to further investigate the reasons behind the fluctuations in the quick ratio to assess the company's ongoing liquidity management strategies.
Peer comparison
Dec 31, 2024