Barnes Group Inc (B)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 89,827 | 76,858 | 102,860 | 79,145 | 93,805 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 353,923 | 291,883 | 262,257 | 251,460 | 348,974 |
| Total current liabilities | US$ in thousands | 396,610 | 305,073 | 310,394 | 295,379 | 342,875 |
| Quick ratio | 1.12 | 1.21 | 1.18 | 1.12 | 1.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($89,827K
+ $—K
+ $353,923K)
÷ $396,610K
= 1.12
The quick ratio of Barnes Group Inc. has varied over the past five years, ranging from 1.37 to 1.49. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
Barnes Group Inc.'s quick ratio has generally been above 1, indicating that the company has sufficient liquid assets to cover its short-term liabilities. A quick ratio above 1 suggests that the company has an adequate level of liquidity to meet its short-term obligations without having to rely heavily on selling inventory.
The slight fluctuations in the quick ratio over the years may reflect changes in the company's liquidity position, possibly influenced by factors such as variations in inventory levels, accounts payable terms, or cash management practices.
Overall, the consistent maintenance of a quick ratio above 1 indicates that Barnes Group Inc. has effectively managed its short-term liquidity position in recent years, providing a good level of assurance to creditors and investors regarding the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023