PC Connection Inc (CNXN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 144,954 | 122,930 | 108,310 | 95,655 | 90,060 |
| Short-term investments | US$ in thousands | 152,232 | — | — | — | — |
| Receivables | US$ in thousands | 664,035 | 667,776 | 655,143 | 677,641 | 606,199 |
| Total current liabilities | US$ in thousands | 327,965 | 310,517 | 374,632 | 342,260 | 308,923 |
| Quick ratio | 2.93 | 2.55 | 2.04 | 2.26 | 2.25 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($144,954K
+ $152,232K
+ $664,035K)
÷ $327,965K
= 2.93
The quick ratio of PC Connection Inc has shown a positive trend over the past five years, indicating the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio has improved steadily from 2.25 in 2019 to 2.93 in 2023. This suggests that the company has a sufficient level of liquid assets, such as cash and accounts receivable, compared to its current liabilities.
A quick ratio above 1 indicates that a company has an adequate level of liquid assets to cover its short-term liabilities. Therefore, PC Connection Inc has demonstrated strong liquidity levels over the years, which may signify efficient management of working capital and financial stability. The gradual increase in the quick ratio points towards a strengthening financial position and a reduced risk of liquidity problems in the near term. Overall, the quick ratio analysis shows that PC Connection Inc has been effectively managing its short-term financial obligations and maintaining a healthy liquidity position.
Peer comparison
Dec 31, 2023