Dover Corporation (DOV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 398,561 | 380,868 | 385,504 | 513,075 | 397,253 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,432,040 | 1,516,870 | 1,347,510 | 1,137,220 | 1,217,190 |
| Total current liabilities | US$ in thousands | 2,413,770 | 2,773,270 | 2,250,340 | 1,738,800 | 1,748,090 |
| Quick ratio | 0.76 | 0.68 | 0.77 | 0.95 | 0.92 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($398,561K
+ $—K
+ $1,432,040K)
÷ $2,413,770K
= 0.76
The quick ratio of Dover Corp. has fluctuated over the past five years, ranging from 0.74 to 1.03. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations without relying on inventory sales.
In 2023, the quick ratio slightly improved to 0.82 compared to the previous year, showing the company's enhanced liquidity position. However, the ratio is still below 1, suggesting that Dover Corp. may face challenges in meeting its short-term liabilities using only its most liquid assets. This indicates a potential need for improved cash management or a reduction in short-term liabilities to strengthen the company's financial health. Further monitoring of the quick ratio trend will be essential to assess Dover Corp.'s liquidity position and financial stability.
Peer comparison
Dec 31, 2023