CDW Corp (CDW)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 588,700 315,200 258,100 1,410,200 154,000
Short-term investments US$ in thousands
Receivables US$ in thousands 5,038,000 4,950,400 4,934,900 3,592,100 3,397,300
Total current liabilities US$ in thousands 5,442,000 4,947,100 5,096,000 3,898,300 3,491,400
Quick ratio 1.03 1.06 1.02 1.28 1.02

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($588,700K + $—K + $5,038,000K) ÷ $5,442,000K
= 1.03

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term financial obligations with its most liquid assets. A quick ratio of 1 indicates that a company has just enough liquid assets to cover its immediate liabilities.

Based on the data provided for CDW Corp from 2019 to 2023, the quick ratio has fluctuated over the years. In 2019, the quick ratio was 1.07, indicating a marginal coverage of short-term obligations with liquid assets. In 2020, the quick ratio improved significantly to 1.33, suggesting a better ability to meet immediate liabilities.

However, in the following years, the quick ratio slightly decreased. In 2021, the quick ratio was 1.09, implying a slight decrease in the company's ability to cover short-term obligations. The ratio then increased in 2022 to 1.17, indicating a better position to meet short-term liabilities.

In the most recent year, 2023, the quick ratio of CDW Corp stood at 1.11. This value suggests that the company still has sufficient liquid assets to meet its short-term obligations, although slightly lower than the previous year. Overall, the trend in the quick ratio for CDW Corp shows fluctuation over the past five years, with varying levels of liquidity to cover immediate financial obligations.


Peer comparison

Dec 31, 2023