Equifax Inc (EFX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 216,800 | 285,200 | 224,700 | 1,684,600 | 401,300 |
| Short-term investments | US$ in thousands | — | -36,800 | — | -149,000 | — |
| Receivables | US$ in thousands | 908,200 | 857,700 | 727,600 | 630,600 | 532,100 |
| Total current liabilities | US$ in thousands | 2,019,000 | 2,015,200 | 2,291,300 | 2,483,100 | 1,359,100 |
| Quick ratio | 0.56 | 0.55 | 0.42 | 0.87 | 0.69 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($216,800K
+ $—K
+ $908,200K)
÷ $2,019,000K
= 0.56
The quick ratio of Equifax, Inc. has exhibited fluctuations over the past five years. In 2023, the quick ratio stood at 0.67, showing a slight decrease from the previous year's ratio of 0.68. This indicates that in 2023, Equifax had $0.67 of liquid assets available to cover each dollar of current liabilities, which suggests a relatively weaker liquidity position compared to the previous year.
Comparing 2023 to 2021, there was a notable improvement in the quick ratio from 0.49 to 0.67. This indicates that the company had increased its ability to meet short-term obligations using its quick assets in 2023 compared to 2021.
In 2020, Equifax had a quick ratio of 1.00, indicating that it had enough liquid assets to cover its current liabilities entirely. This suggests a strong liquidity position for the company in 2020. However, in 2019, the quick ratio was 0.89, slightly below the 1.00 mark but still indicating a relatively healthy liquidity position.
Overall, fluctuations in Equifax's quick ratio over the past five years suggest varying levels of liquidity management and the company's ability to cover short-term obligations with its quick assets. The trend in the quick ratio should be carefully monitored to assess Equifax's short-term liquidity health and its ability to meet financial obligations promptly.