Fortune Brands Innovations Inc. (FBIN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 381,100 | 366,400 | 642,500 | 425,600 | 419,100 |
| Short-term investments | US$ in thousands | — | 1,241,200 | 84,600 | 45,900 | — |
| Receivables | US$ in thousands | 514,400 | 534,200 | 521,800 | 885,700 | 734,900 |
| Total current liabilities | US$ in thousands | 1,602,300 | 1,200,400 | 1,544,700 | 1,971,100 | 1,345,100 |
| Quick ratio | 0.56 | 1.78 | 0.81 | 0.69 | 0.86 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($381,100K
+ $—K
+ $514,400K)
÷ $1,602,300K
= 0.56
The quick ratio of Fortune Brands Innovations Inc. has exhibited fluctuating trends over the past five years. As of December 31, 2020, the quick ratio stood at 0.86, indicating that the company had $0.86 in liquid assets available to cover each dollar of current liabilities.
However, by the end of 2021, the quick ratio decreased to 0.69, suggesting a potential liquidity challenge as the company had fewer liquid assets relative to its current liabilities. In 2022, the quick ratio improved to 0.81, although it remained below the ideal threshold of 1, signaling that Fortune Brands may still face liquidity constraints.
The quick ratio experienced a significant upsurge in 2023, reaching 1.78, which signifies a healthier liquidity position with more than enough liquid assets to cover short-term obligations.
Nonetheless, the quick ratio declined sharply in 2024 to 0.56, raising concerns about the company's ability to meet its short-term liabilities using its readily available assets.
Overall, fluctuations in the quick ratio of Fortune Brands Innovations Inc. suggest varying levels of liquidity risk and underscore the importance of monitoring the company's ability to manage its current financial obligations.
Peer comparison
Dec 31, 2024