ESAB Corp (ESAB)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 249,358 | 253,670 | 228,470 | 76,495 | 102,003 | 82,833 | 74,449 | 82,064 | 72,024 | 60,634 | 53,475 | 56,631 | 41,209 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 632,051 | 637,071 | 651,096 | 631,302 | 620,082 | 610,357 | 618,372 | 630,422 | 601,575 | 610,582 | 642,082 | 652,410 | 596,589 |
| Quick ratio | 0.39 | 0.40 | 0.35 | 0.12 | 0.16 | 0.14 | 0.12 | 0.13 | 0.12 | 0.10 | 0.08 | 0.09 | 0.07 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($249,358K
+ $—K
+ $—K)
÷ $632,051K
= 0.39
The quick ratio of ESAB Corp has exhibited fluctuations over the period from December 31, 2021, to December 31, 2024. The quick ratio started at a low of 0.07 on December 31, 2021, indicating a limited ability to cover current liabilities with liquid assets.
There was a gradual improvement in the quick ratio, reaching 0.16 by December 31, 2023, suggesting a better ability to meet short-term obligations with available liquid assets. However, there was a decrease in the quick ratio to 0.12 on March 31, 2024, followed by a significant increase to 0.40 on September 30, 2024, and 0.39 on December 31, 2024.
The quick ratio exceeding 1 indicates that the company could cover its current liabilities with its most liquid assets. ESAB Corp's quick ratio experienced volatility, indicating fluctuations in its ability to fulfill short-term obligations without relying heavily on inventory or other less liquid assets. Further analysis is needed to understand the reasons behind these fluctuations and their implications for the company's liquidity position.
Peer comparison
Dec 31, 2024