DXP Enterprises Inc (DXPE)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 148,320 | 173,120 | 46,026 | 48,989 | 117,353 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 243,984 | 224,165 | 212,901 | 181,062 | 144,139 |
| Quick ratio | 0.61 | 0.77 | 0.22 | 0.27 | 0.81 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($148,320K
+ $—K
+ $—K)
÷ $243,984K
= 0.61
The quick ratio of DXP Enterprises Inc, which measures the company's ability to meet its short-term obligations using its most liquid assets, has shown fluctuations over the past five years.
As of December 31, 2020, the quick ratio was 0.81, indicating that the company had $0.81 in liquid assets available to cover each dollar of its current liabilities. However, by December 31, 2021, the quick ratio decreased significantly to 0.27, suggesting a potential strain on the company's ability to meet its short-term obligations.
The trend continued in the following years, with the quick ratio dropping to 0.22 by December 31, 2022, signaling a further deterioration in the company's liquidity position.
By December 31, 2023, the quick ratio improved to 0.77, offering some relief compared to the previous year. However, the ratio decreased again to 0.61 by December 31, 2024, indicating a slight decline in liquidity.
Overall, the downward trend in the quick ratio from 2020 to 2022 implies potential challenges in meeting short-term obligations, while the slight recovery in 2023 followed by another dip in 2024 underscores the importance of closely monitoring the company's liquidity position and working capital management strategies.
Peer comparison
Dec 31, 2024