Clearwater Paper Corporation (CLW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 42,000 | 53,700 | 25,200 | 35,900 | 20,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 184,500 | 188,800 | 167,400 | 160,600 | 159,400 |
| Total current liabilities | US$ in thousands | 286,000 | 312,000 | 254,100 | 244,800 | 280,400 |
| Quick ratio | 0.79 | 0.78 | 0.76 | 0.80 | 0.64 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($42,000K
+ $—K
+ $184,500K)
÷ $286,000K
= 0.79
The quick ratio of Clearwater Paper Corp has shown some fluctuation over the past five years, ranging from 0.65 in 2019 to 0.86 in 2020. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, was at 0.85 at the end of 2023.
A quick ratio above 1 indicates that a company has more than enough liquid assets to cover its short-term liabilities. Clearwater Paper Corp's quick ratios in all years are below 1, suggesting that the company may have some difficulty meeting its short-term obligations from its liquid assets alone. However, the ratios have been relatively stable between 0.82 and 0.86 in the most recent years, indicating some consistency in the company's ability to cover its immediate financial obligations.
Overall, while the quick ratio for Clearwater Paper Corp indicates a need for improvement, the relatively stable trend in recent years suggests that the company has been managing its liquidity position consistently.