Fortune Brands Innovations Inc. (FBIN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 366,400 | 642,500 | 425,600 | 419,100 | 387,900 |
| Short-term investments | US$ in thousands | — | 84,600 | 45,900 | — | — |
| Receivables | US$ in thousands | 534,200 | 521,800 | 885,700 | 734,900 | 624,800 |
| Total current liabilities | US$ in thousands | 1,200,400 | 1,544,700 | 1,971,100 | 1,345,100 | 1,409,300 |
| Quick ratio | 0.75 | 0.81 | 0.69 | 0.86 | 0.72 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($366,400K
+ $—K
+ $534,200K)
÷ $1,200,400K
= 0.75
The quick ratio of Fortune Brands Innovations Inc. has been fluctuating over the past five years. In 2023, the quick ratio stood at 0.75, which indicates that the company had $0.75 in liquid assets available to cover $1 of current liabilities. This ratio decreased from the previous year where it was 0.81 and also fell below the industry benchmark of 1.0, suggesting potential liquidity concerns.
In 2021, the quick ratio was at its lowest point at 0.69, signaling a weaker ability to meet short-term obligations with liquid assets. The ratio improved significantly in 2022 to 0.86, reflecting a better liquidity position compared to the previous year. However, in 2020 and 2019, the quick ratios were 0.72 and 0.75, respectively, indicating a similar liquidity position during those years.
Overall, the trend in the quick ratio of Fortune Brands Innovations Inc. shows fluctuations with some years indicating stronger liquidity positions compared to others. Investors and analysts should further investigate the factors influencing these fluctuations to assess the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023