Ecolab Inc (ECL)

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	919,500	1,001,300	554,200	419,400	598,600	112,900	124,900	99,400	359,900	897,900	1,402,400	1,189,500	1,260,200	1,034,700	1,369,000	1,661,900	118,800	135,900	85,700	79,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	67,600	—	—	—
Receivables	US$ in thousands	3,021,100	3,018,100	2,995,400	2,873,500	2,882,200	2,880,400	2,826,700	2,662,100	2,629,700	2,542,100	2,496,100	2,451,000	2,442,400	2,505,600	2,380,100	3,006,100	2,930,200	2,877,400	2,904,900	2,831,600
Total current liabilities	US$ in thousands	4,345,800	4,600,500	4,467,500	4,489,600	4,210,400	3,772,300	3,806,000	3,631,300	3,553,200	2,894,500	2,880,300	2,852,200	2,932,200	3,106,400	3,227,700	4,257,400	3,630,600	3,919,500	4,127,700	4,156,000
Quick ratio		0.91	0.87	0.79	0.73	0.83	0.79	0.78	0.76	0.84	1.19	1.35	1.28	1.26	1.14	1.16	1.10	0.86	0.77	0.72	0.70

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($919,500K + $—K + $3,021,100K) ÷ $4,345,800K
= 0.91

The quick ratio of Ecolab, Inc. has displayed some fluctuations over the past eight quarters. It has ranged from 0.79 to 0.95. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

In general, a higher quick ratio is desirable as it signifies a stronger ability to cover short-term obligations. Ecolab's quick ratio has shown improvement in the most recent quarter, reaching 0.95, which indicates a positive trend in the company's short-term liquidity position. However, it is important to monitor this ratio over time to ensure it remains at a satisfactory level to meet upcoming financial commitments.