Expeditors International of Washington, Inc. (EXPD)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	1,148,320	1,512,880	2,034,130	1,728,690	1,527,790
Short-term investments	US$ in thousands	-524,759	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	2,066,470	1,704,410	2,054,060	3,726,300	1,893,040
Quick ratio		0.30	0.89	0.99	0.46	0.81

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,148,320K + $-524,759K + $—K) ÷ $2,066,470K
= 0.30

The quick ratio of Expeditors International of Washington, Inc. has fluctuated over the past five years. As of December 31, 2020, the quick ratio was 0.81, indicating that the company had $0.81 in liquid assets available to cover each dollar of current liabilities. However, in the following year, December 31, 2021, the quick ratio decreased to 0.46, suggesting a deterioration in the company's short-term liquidity position.

By December 31, 2022, the quick ratio improved significantly to 0.99, surpassing the ideal threshold of 1.0, which indicates that Expeditors International had sufficient liquid assets to meet its short-term obligations. The ratio remained relatively stable at 0.89 by December 31, 2023, indicating that the company continued to maintain an adequate level of liquidity.

However, there was a notable decline in the quick ratio to 0.30 by December 31, 2024, which is concerning as it may suggest potential liquidity issues for Expeditors International in meeting its short-term liabilities. Overall, it is important for the company to monitor and manage its liquidity position effectively to ensure financial stability and meet its upcoming obligations.