Comfort Systems USA Inc (FIX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 549,939 | 205,150 | 57,214 | 58,776 | 54,896 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,582,770 | 1,721,200 | 1,170,800 | 836,554 | 692,904 |
| Quick ratio | 0.21 | 0.12 | 0.05 | 0.07 | 0.08 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($549,939K
+ $—K
+ $—K)
÷ $2,582,770K
= 0.21
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Comfort Systems USA Inc's quick ratio has shown fluctuations over the past five years.
As of December 31, 2020, the quick ratio was 0.08, indicating that for every $1 of current liabilities, the company had $0.08 of highly liquid assets available to cover those obligations. This signifies a relatively low level of liquidity, suggesting potential difficulties in meeting short-term obligations.
The quick ratio decreased to 0.07 by December 31, 2021, indicating a further reduction in liquidity. This could potentially raise concerns about the company's ability to pay off its immediate liabilities without having to sell inventory or other less liquid assets.
By December 31, 2022, the quick ratio fell to 0.05, reaching a concerning level as the company's ability to meet short-term obligations deteriorated significantly. This suggests a heightened liquidity risk and may indicate potential difficulties in managing operational expenses and debt repayments.
However, the trend reversed by December 31, 2023, with the quick ratio improving to 0.12. This increase indicates a better liquidity position compared to the previous years, suggesting that the company may have enhanced its ability to cover short-term liabilities with liquid assets.
As of December 31, 2024, the quick ratio further improved to 0.21, signaling a significant enhancement in liquidity. Comfort Systems USA Inc appears to have strengthened its ability to meet short-term obligations with its liquid assets, indicating a potentially healthier financial position compared to the prior years.
In summary, the fluctuating trend in Comfort Systems USA Inc's quick ratio over the five-year period reflects varying levels of liquidity and the company's ability to manage short-term obligations. The improvements in the quick ratio in later years demonstrate progress in enhancing liquidity, which may contribute to a more stable financial position.
Peer comparison
Dec 31, 2024