PC Connection Inc (CNXN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 178,318 | 144,954 | 122,930 | 108,310 | 95,655 |
| Short-term investments | US$ in thousands | 264,295 | 152,232 | — | — | — |
| Receivables | US$ in thousands | 672,127 | 664,035 | 667,776 | 655,143 | 677,641 |
| Total current liabilities | US$ in thousands | 371,205 | 327,965 | 310,517 | 374,632 | 342,260 |
| Quick ratio | 3.00 | 2.93 | 2.55 | 2.04 | 2.26 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($178,318K
+ $264,295K
+ $672,127K)
÷ $371,205K
= 3.00
The quick ratio of PC Connection Inc has shown a generally positive trend over the years. As of December 31, 2020, the quick ratio was 2.26, indicating that the company had $2.26 in liquid assets available to cover each dollar of current liabilities.
However, by December 31, 2021, the quick ratio decreased to 2.04, suggesting a slight decline in the company's short-term liquidity position.
In the following years, PC Connection Inc managed to improve its quick ratio significantly. By December 31, 2022, the quick ratio increased to 2.55, indicating a stronger ability to meet its short-term obligations with liquid assets.
This positive trend continued, with the quick ratio reaching 2.93 as of December 31, 2023, and further increasing to 3.00 by December 31, 2024. These higher quick ratios demonstrate an improved financial position in terms of liquidity and the company's ability to manage its short-term liabilities effectively.
Overall, the trend in PC Connection Inc's quick ratio reflects a positive and strengthening liquidity position over the years, indicating a healthy financial management strategy.
Peer comparison
Dec 31, 2024