PC Connection Inc (CNXN)
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 | 144,954 | 240,509 | 243,983 | 134,810 | 122,930 | 116,190 | 94,896 | 67,409 | 108,310 | 89,728 | 115,665 | 92,257 | 95,655 | 108,051 | 165,943 | 111,323 | 90,060 | 98,489 | 69,739 | 93,470 |
| Short-term investments | US$ in thousands | 152,232 | 48,894 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 664,035 | 594,985 | 601,679 | 621,844 | 667,776 | 646,656 | 643,953 | 634,142 | 655,143 | 585,380 | 581,656 | 554,696 | 677,641 | 588,960 | 446,716 | 486,704 | 606,199 | 478,907 | 500,968 | 433,948 |
| Total current liabilities | US$ in thousands | 327,965 | 339,963 | 347,305 | 318,309 | 310,517 | 352,920 | 366,883 | 369,803 | 374,632 | 293,348 | 330,494 | 274,944 | 342,260 | 338,360 | 308,207 | 277,309 | 308,923 | 257,470 | 321,235 | 258,881 |
| Quick ratio | 2.93 | 2.60 | 2.43 | 2.38 | 2.55 | 2.16 | 2.01 | 1.90 | 2.04 | 2.30 | 2.11 | 2.35 | 2.26 | 2.06 | 1.99 | 2.16 | 2.25 | 2.24 | 1.78 | 2.04 |
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 measures the company's ability to cover its short-term liabilities with its most liquid assets. PC Connection, Inc.'s quick ratio has been steadily improving over the past eight quarters, indicating a stronger liquidity position.
In Q4 2023, the quick ratio was 2.82, which means the company had $2.82 in liquid assets available to cover each dollar of its current liabilities. This is an improvement compared to the previous quarters, showing a positive trend in the company's ability to meet its short-term obligations.
The quick ratio exceeding 1 suggests that PC Connection, Inc. has more than enough liquid assets to cover its short-term liabilities, indicating a healthy liquidity position. The consistent increase in the quick ratio over the past year reflects the company's improved ability to manage its short-term financial obligations.
Overall, the trend of increasing quick ratios indicates that PC Connection, Inc. has been effectively managing its liquidity and demonstrates a strong financial position in the short term.
Peer comparison
Dec 31, 2023