Expeditors International of Washington Inc (EXPD)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	1,512,880	2,034,130	1,728,690	1,527,790	1,230,490
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	1,532,600	2,107,640	3,810,290	1,998,060	1,315,090
Total current liabilities	US$ in thousands	1,704,410	2,054,060	3,726,300	1,893,040	1,168,320
Quick ratio		1.79	2.02	1.49	1.86	2.18

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,512,880K + $—K + $1,532,600K) ÷ $1,704,410K
= 1.79

The quick ratio of Expeditors International Of Washington, Inc. has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A higher quick ratio indicates a stronger liquidity position.

In 2023, the quick ratio decreased to 2.02 from 2.20 in 2022, suggesting a slight decrease in the company's ability to cover its short-term liabilities with its quick assets. However, the quick ratio of 2.02 still indicates that Expeditors International Of Washington, Inc. has a comfortable level of liquidity to meet its immediate financial obligations.

Comparing the current ratio to previous years, we see a similar trend in 2021 when the quick ratio was 1.78, lower than the ratios in 2022 and 2020. However, the quick ratio of 2.09 in 2020 and 2.37 in 2019 indicates that the company had stronger liquidity positions in those years.

Overall, despite the slight decrease in the quick ratio in 2023, Expeditors International Of Washington, Inc. has historically maintained a healthy level of liquidity to fulfill its short-term financial obligations. It would be important to continue monitoring the quick ratio in future periods to assess any substantial changes in the company's liquidity position.