Belden Inc (BDC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 597,044 | 687,676 | 641,563 | 500,666 | 407,480 |
| Short-term investments | US$ in thousands | — | — | 2,194 | 1,328 | — |
| Receivables | US$ in thousands | 413,806 | 440,102 | 383,444 | 296,817 | 334,634 |
| Total current liabilities | US$ in thousands | 633,504 | 639,919 | 752,866 | 520,761 | 722,544 |
| Quick ratio | 1.60 | 1.76 | 1.36 | 1.53 | 1.03 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($597,044K
+ $—K
+ $413,806K)
÷ $633,504K
= 1.60
The quick ratio of Belden Inc has exhibited a fluctuating trend over the past five years, ranging from 1.07 in 2019 to 1.87 in 2022. The quick ratio measures the company's ability to cover its current liabilities with its most liquid assets readily available for use. A higher quick ratio indicates a stronger ability to meet short-term obligations without relying on selling inventory.
Belden Inc's quick ratio has generally been above 1.0, indicating that the company has had an excess of quick assets to cover its current liabilities each year. A quick ratio above 1.0 is typically considered a positive sign of liquidity and financial health, as it suggests the company can meet its short-term obligations without difficulty.
The slight decrease in the quick ratio from 2022 to 2023, from 1.87 to 1.72, may indicate a slight decline in the company's liquidity position. However, a quick ratio of 1.72 still indicates that Belden Inc has sufficient quick assets to cover its current liabilities comfortably as of December 31, 2023.
Overall, while there have been fluctuations in the quick ratio over the years, the consistently above 1.0 values suggest that Belden Inc has generally maintained a strong liquidity position and the ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023