Ball Corporation (BALL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 695,000 | 548,000 | 563,000 | 1,366,000 | 1,798,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,334,000 | 2,594,000 | 2,560,000 | 1,738,000 | 1,631,000 |
| Total current liabilities | US$ in thousands | 6,185,000 | 7,008,000 | 5,953,000 | 4,444,000 | 5,577,000 |
| Quick ratio | 0.49 | 0.45 | 0.52 | 0.70 | 0.61 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($695,000K
+ $—K
+ $2,334,000K)
÷ $6,185,000K
= 0.49
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its current liabilities.
Looking at the historical data for Ball Corp., we can see fluctuations in the quick ratio over the past five years. In 2023, the quick ratio was 0.54, a slight increase from the previous year's ratio of 0.47. This indicates that Ball Corp. had $0.54 of liquid assets available to cover each dollar of current liabilities at the end of 2023.
Compared to 2021 and 2020, where the quick ratios were 0.58 and 0.75 respectively, the quick ratio has decreased over the past two years. This downward trend may raise concerns about Ball Corp.'s short-term liquidity position and ability to meet its current obligations.
However, it is worth noting that the quick ratio in 2023 is still higher than the ratio in 2019, which was 0.65. This suggests that Ball Corp. has improved its ability to cover short-term liabilities compared to the situation a few years ago.
Overall, while the recent decrease in the quick ratio raises some liquidity concerns, Ball Corp. may need to closely monitor its liquidity position and take steps to improve its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023