Curtiss-Wright Corporation (CW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 406,867 | 256,974 | 171,004 | 198,248 | 391,033 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 732,678 | 723,304 | 647,148 | 588,718 | 632,194 |
| Total current liabilities | US$ in thousands | 806,544 | 981,045 | 734,867 | 810,377 | 744,731 |
| Quick ratio | 1.41 | 1.00 | 1.11 | 0.97 | 1.37 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($406,867K
+ $—K
+ $732,678K)
÷ $806,544K
= 1.41
The quick ratio of Curtiss-Wright Corp. has shown fluctuations over the past five years, ranging from 1.04 in 2020 to 1.50 in 2023. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.
In 2023, the quick ratio of 1.50 suggests the company had $1.50 in liquid assets available to cover each dollar of current liabilities, signifying a strong liquidity position. This improvement from the previous year's ratio of 1.06 indicates that the company enhanced its ability to meet short-term obligations.
Comparing the quick ratio to previous years, the ratios in 2021 and 2019 were also healthy at 1.20 and 1.48, respectively, indicating a consistent ability to cover current liabilities with liquid assets. However, the quick ratio dipped in 2020 to 1.04, which may suggest a temporary strain on liquidity.
Overall, the trend in Curtiss-Wright Corp.'s quick ratio indicates varying levels of liquidity over the years, with 2023 demonstrating a strong position. It is essential for the company to maintain a healthy quick ratio to ensure it can meet short-term obligations effectively.
Peer comparison
Dec 31, 2023