Dril-Quip Inc (DRQ)
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 | 187,323 | 181,072 | 236,490 | 235,343 | 259,407 | 290,279 | 320,784 | 338,008 | 355,451 | 375,172 | 370,481 | 362,213 | 345,955 | 359,171 | 345,808 | 343,472 | 398,946 | 413,102 | 423,126 | 414,808 |
| Short-term investments | US$ in thousands | 25,908 | 8,911 | 18,795 | 18,921 | 32,232 | 25,287 | — | — | 0 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 283,998 | 287,642 | 274,624 | 282,496 | 235,932 | 220,199 | 216,324 | 195,923 | 203,584 | 217,072 | 235,817 | 243,319 | 256,520 | 238,851 | 241,260 | 247,950 | 248,160 | 311,719 | 286,907 | 274,856 |
| Total current liabilities | US$ in thousands | 117,703 | 106,735 | 88,124 | 83,360 | 87,555 | 89,287 | 84,856 | 70,321 | 93,663 | 91,826 | 106,535 | 95,307 | 85,512 | 100,982 | 113,711 | 93,446 | 96,940 | 96,533 | 87,097 | 70,729 |
| Quick ratio | 4.22 | 4.47 | 6.01 | 6.44 | 6.03 | 6.00 | 6.33 | 7.59 | 5.97 | 6.45 | 5.69 | 6.35 | 7.05 | 5.92 | 5.16 | 6.33 | 6.68 | 7.51 | 8.15 | 9.75 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($187,323K
+ $25,908K
+ $283,998K)
÷ $117,703K
= 4.22
The quick ratio of Dril-Quip, Inc. has shown a fluctuating trend over the quarters provided. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, such as cash and accounts receivable, has ranged from a low of 4.43 in Q4 2023 to a high of 8.19 in Q1 2022.
A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its short-term liabilities. Dril-Quip's quick ratio has consistently been well above 1 in all quarters, indicating a strong liquidity position.
The decrease in the quick ratio from Q1 2022 to Q4 2023 could be attributed to changes in the company's current assets and liabilities mix. It is important to note that a higher quick ratio is generally preferred as it suggests a greater ability to cover short-term obligations without relying on the sale of inventory.
Overall, Dril-Quip, Inc. has maintained a strong liquidity position as evidenced by its consistently high quick ratio values, indicating a healthy balance between its liquid assets and short-term liabilities.
Peer comparison
Dec 31, 2023