DXP Enterprises Inc (DXPE)
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 | 173,120 | 27,176 | 15,533 | 58,282 | 46,026 | 16,972 | 20,574 | 36,559 | 48,989 | 63,043 | 79,169 | 127,361 | 119,328 | 97,287 | 78,678 | 32,730 | 54,203 | 28,436 | 25,429 | 30,606 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 311,171 | 321,365 | 326,349 | 312,359 | 323,373 | 284,174 | 273,626 | 229,232 | 227,885 | 216,723 | 197,346 | 172,866 | -8,628 | 158,847 | 155,136 | 194,901 | 188,112 | 211,616 | 210,850 | 197,267 |
| Total current liabilities | US$ in thousands | 224,165 | 221,858 | 207,965 | 224,755 | 212,901 | 245,861 | 237,692 | 177,980 | 181,062 | 188,621 | 187,424 | 156,281 | 147,139 | 155,872 | 149,219 | 144,552 | 139,325 | 151,978 | 158,321 | 158,632 |
| Quick ratio | 2.16 | 1.57 | 1.64 | 1.65 | 1.74 | 1.22 | 1.24 | 1.49 | 1.53 | 1.48 | 1.48 | 1.92 | 0.75 | 1.64 | 1.57 | 1.57 | 1.74 | 1.58 | 1.49 | 1.44 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($173,120K
+ $—K
+ $311,171K)
÷ $224,165K
= 2.16
The quick ratio of DXP Enterprises Inc has shown fluctuations over the past five years, ranging from as low as 0.75 to as high as 2.16. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets and provides insight into its liquidity and ability to cover immediate liabilities.
The quick ratio has generally been above 1, indicating that DXP Enterprises Inc has had an adequate level of liquid assets to cover its short-term liabilities in most periods. However, the significant drop in the quick ratio to 0.75 in December 2020 raises some concern about the company's short-term liquidity position at that time.
Overall, the trend in the quick ratio for DXP Enterprises Inc has shown some fluctuations but has generally been above 1, suggesting a relatively healthy liquidity position over the analyzed period. Going forward, it would be important to monitor the quick ratio to ensure that the company maintains a sufficient level of liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2023