ESAB Corp (ESAB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 102,003 | 82,833 | 74,449 | 82,064 | 72,024 | 60,634 | 53,475 | 56,631 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 385,198 | 388,483 | 412,668 | 404,128 | 374,329 | 359,956 | — | — |
| Total current liabilities | US$ in thousands | 620,082 | 610,357 | 618,372 | 630,422 | 601,575 | 610,582 | 642,082 | 652,410 |
| Quick ratio | 0.79 | 0.77 | 0.79 | 0.77 | 0.74 | 0.69 | 0.08 | 0.09 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($102,003K
+ $—K
+ $385,198K)
÷ $620,082K
= 0.79
The quick ratio of ESAB Corp has been relatively stable over the past five quarters, with values ranging from 0.95 to 1.01. The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets and a ratio above 1 indicates that the company has sufficient quick assets to cover its current liabilities.
ESAB Corp's quick ratio has been mostly above 1 over the period, suggesting the company has generally been able to meet its short-term obligations with its liquid assets. A quick ratio of less than 1 could indicate potential liquidity issues, but ESAB Corp's consistent ratios above 1 indicate a healthy liquidity position to cover its current liabilities. However, investors and analysts may want to monitor any fluctuations in the quick ratio to ensure the company's liquidity remains stable over time.
Peer comparison
Dec 31, 2023