Element Solutions Inc (ESI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 359,400 | 289,300 | 265,600 | 330,100 | 291,900 |
| Short-term investments | US$ in thousands | — | 19,900 | 32,700 | — | — |
| Receivables | US$ in thousands | 439,600 | 461,800 | 455,800 | 492,200 | 403,400 |
| Total current liabilities | US$ in thousands | 379,700 | 369,400 | 344,400 | 415,200 | 314,300 |
| Quick ratio | 2.10 | 2.09 | 2.19 | 1.98 | 2.21 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($359,400K
+ $—K
+ $439,600K)
÷ $379,700K
= 2.10
The quick ratio of Element Solutions Inc. demonstrates a relatively stable liquidity position over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the quick ratio stood at 2.21, indicating that the company's liquid assets were more than twice its current liabilities, signifying strong short-term liquidity. In 2021, the ratio declined to 1.98, reflecting a slight reduction in liquidity but still well above the 1.0 threshold, which suggests that the company's liquid assets remained sufficient to cover its short-term obligations.
Following this decline, the ratio experienced a modest recovery in 2022 to 2.19, returning to a level comparable to 2020, thereby maintaining a robust liquidity cushion. However, in 2023, the ratio decreased slightly again to 2.09, indicating a marginal reduction in liquidity, but still signifying that liquid assets exceeded current liabilities by a comfortable margin. The ratio remained relatively stable into 2024 at 2.10, consolidating the prior year's position with minimal fluctuation.
Overall, the consistent positioning of the quick ratio above 2.0 throughout the period reflects that Element Solutions Inc. maintained a strong liquidity profile, capable of quickly covering its current liabilities without reliance on inventory sales. Although minor fluctuations occurred, the company’s liquidity position has remained comparatively stable, highlighting effective management of liquid assets relative to current obligations over these years.
Peer comparison
Dec 31, 2024