Clearwater Paper Corporation (CLW)
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 | 42,000 | 110,200 | 41,700 | 16,700 | 53,700 | 50,800 | 69,500 | 36,400 | 25,200 | 27,800 | 60,900 | 57,100 | 35,900 | 47,500 | 48,200 | 60,800 | 20,000 | 7,800 | 41,800 | 12,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 15 | — | — |
| Receivables | US$ in thousands | 184,500 | 173,000 | 196,600 | 186,300 | 188,800 | 180,400 | 187,300 | 172,300 | 167,400 | 159,400 | 144,000 | 134,900 | 160,600 | 179,500 | 191,900 | 207,100 | 159,400 | 157,929 | 169,972 | 168,093 |
| Total current liabilities | US$ in thousands | 286,000 | 260,900 | 263,500 | 265,500 | 312,000 | 295,100 | 300,300 | 256,100 | 254,100 | 256,900 | 255,900 | 235,300 | 244,800 | 239,600 | 247,500 | 290,400 | 280,400 | 294,993 | 543,724 | 515,220 |
| Quick ratio | 0.79 | 1.09 | 0.90 | 0.76 | 0.78 | 0.78 | 0.86 | 0.81 | 0.76 | 0.73 | 0.80 | 0.82 | 0.80 | 0.95 | 0.97 | 0.92 | 0.64 | 0.56 | 0.39 | 0.35 |
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 fluctuations over the past eight quarters. In Q4 2023, the quick ratio stood at 0.85, indicating that the company had $0.85 in liquid assets to cover each $1 of current liabilities. This ratio declined from the previous quarter's ratio of 1.13, suggesting a decrease in the company's ability to meet short-term obligations without relying on selling inventory.
It is noteworthy that the quick ratio has been volatile over the period, ranging from a low of 0.82 in Q3 2022 to a high of 1.13 in Q3 2023. Generally, a quick ratio below 1.0 may indicate that Clearwater Paper Corp may have difficulty meeting its short-term obligations without generating additional liquid assets or using existing inventory.
Further analysis of the underlying components contributing to the quick ratio, such as cash, marketable securities, and accounts receivable, would provide additional insights into the company's liquidity position. Monitoring the trend of the quick ratio over time will be important to assess the company's ability to manage its short-term liquidity effectively.