Deluxe Corporation (DLX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 71,962 | 40,435 | 41,231 | 123,122 | 73,620 |
| Short-term investments | US$ in thousands | — | 8,126 | 13,307 | 28,462 | — |
| Receivables | US$ in thousands | 235,665 | 251,480 | 246,684 | 185,286 | 163,421 |
| Total current liabilities | US$ in thousands | 819,065 | 752,345 | 683,358 | 411,820 | 407,947 |
| Quick ratio | 0.38 | 0.40 | 0.44 | 0.82 | 0.58 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($71,962K
+ $—K
+ $235,665K)
÷ $819,065K
= 0.38
The quick ratio of Deluxe Corp. has shown some fluctuation over the past five years. The ratio was 1.06 in 2019, indicating that the company had $1.06 of liquid assets available to cover each $1 of current liabilities. In 2020, the ratio improved to 1.13, suggesting an even healthier liquidity position. However, in the following years, the quick ratio declined to 0.86 in 2021, 0.87 in 2022, and 0.88 in 2023, indicating a decrease in the company's ability to cover its short-term obligations with its most liquid assets.
Overall, the trend in Deluxe Corp.'s quick ratio shows a recent decline in liquidity levels when compared to the peak in 2020. This may indicate potential challenges in meeting short-term financial obligations with the current level of liquid assets. Investors and stakeholders may want to monitor this trend closely to assess the company's ability to manage its short-term liquidity effectively.