Brunswick Corporation (BC)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 467,800 | 330,900 | 477,500 | 387,800 | 595,600 | 457,400 | 566,700 | 680,100 | 354,500 | 1,486,400 | 590,200 | 471,900 | 519,600 | 650,400 | 541,500 | 502,900 | 320,300 | 366,200 | 656,100 | 161,500 |
| Short-term investments | US$ in thousands | 11,900 | 800 | 800 | 800 | 17,400 | 34,500 | 37,000 | 6,800 | 13,000 | 800 | 800 | 7,300 | 67,400 | 800 | 800 | 12,400 | 12,400 | 12,400 | 12,400 | 9,900 |
| Receivables | US$ in thousands | 493,200 | 568,200 | 614,500 | 698,000 | 543,000 | 557,700 | 611,000 | 664,700 | 485,300 | 451,100 | 503,300 | 539,100 | 337,600 | 398,800 | 452,600 | 465,400 | 331,800 | 414,700 | 484,500 | 499,200 |
| Total current liabilities | US$ in thousands | 1,752,100 | 1,659,200 | 1,394,000 | 1,438,600 | 1,489,900 | 1,379,300 | 1,347,700 | 1,328,200 | 1,442,200 | 1,256,300 | 1,251,300 | 1,129,000 | 1,079,200 | 949,600 | 1,054,600 | 1,286,200 | 944,400 | 904,000 | 1,015,700 | 1,205,700 |
| Quick ratio | 0.56 | 0.54 | 0.78 | 0.76 | 0.78 | 0.76 | 0.90 | 1.02 | 0.59 | 1.54 | 0.87 | 0.90 | 0.86 | 1.11 | 0.94 | 0.76 | 0.70 | 0.88 | 1.14 | 0.56 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($467,800K
+ $11,900K
+ $493,200K)
÷ $1,752,100K
= 0.56
The quick ratio of Brunswick Corp. has shown a declining trend over the recent quarters. In Q4 2023, the quick ratio was 0.58, slightly lower than the prior quarter's 0.59. This indicates the company may face some challenges in meeting its short-term obligations using its most liquid assets.
Comparing to the same period of the previous year, the Q4 2023 quick ratio is also lower than the value of 0.81 in Q4 2022, suggesting a deterioration in the company's liquidity position since last year.
The quick ratio has been below 1 since Q2 2022, indicating that Brunswick Corp. may have difficulty covering its short-term liabilities with its quick assets alone. This trend raises concerns about the company's ability to meet its immediate financial obligations without relying on inventory or receivables for liquidity.
Overall, the decreasing trend in the quick ratio over the past few quarters signals a potential liquidity strain for Brunswick Corp., and it is essential for the company to closely monitor and manage its liquidity position to ensure its financial health and stability.
Peer comparison
Dec 31, 2023