Dana Inc (DAN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 529,000 | 425,000 | 268,000 | 559,000 | 508,000 |
| Short-term investments | US$ in thousands | — | 17,000 | 17,000 | 21,000 | 19,000 |
| Receivables | US$ in thousands | 1,689,000 | 1,614,000 | 1,586,000 | 1,463,000 | 1,343,000 |
| Total current liabilities | US$ in thousands | 2,602,000 | 2,479,000 | 2,174,000 | 1,941,000 | 1,845,000 |
| Quick ratio | 0.85 | 0.83 | 0.86 | 1.05 | 1.01 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($529,000K
+ $—K
+ $1,689,000K)
÷ $2,602,000K
= 0.85
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term obligations.
Looking at Dana Inc's quick ratio over the last five years, we can see a slight downward trend. In 2019 and 2020, the quick ratio was above 1, indicating a strong ability to cover short-term liabilities with liquid assets. However, in the following years, the quick ratio decreased to 0.93 in 2021, 0.90 in 2022, and 0.92 in 2023. This downward trend suggests that Dana Inc's liquidity position may have weakened over time.
Although the quick ratio has fluctuated slightly, it has consistently remained below 1 in recent years, which may raise concerns about the company's ability to cover its current liabilities with its quick assets. Further analysis of the company's liquidity management and potential risks to its cash flow would be advisable to gain a deeper understanding of Dana Inc's financial health.
Peer comparison
Dec 31, 2023