Fluor Corporation (FLR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,519,000 | 2,439,000 | 2,209,000 | 2,198,780 | 1,997,200 |
| Short-term investments | US$ in thousands | 69,000 | 185,000 | 127,222 | 23,345 | 7,262 |
| Receivables | US$ in thousands | 1,137,000 | 1,109,000 | 901,228 | 1,181,590 | 1,075,250 |
| Total current liabilities | US$ in thousands | 3,163,000 | 3,216,000 | 3,614,000 | 3,572,040 | 3,905,120 |
| Quick ratio | 1.18 | 1.16 | 0.90 | 0.95 | 0.79 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,519,000K
+ $69,000K
+ $1,137,000K)
÷ $3,163,000K
= 1.18
The quick ratio, also known as the acid-test ratio, indicates a company's ability to meet its short-term obligations with its most liquid assets.
For Fluor Corporation, the quick ratio has shown a generally upward trend over the past five years. As of December 31, 2023, the quick ratio stands at 1.60, indicating that the company has $1.60 of liquid assets available to cover each dollar of its current liabilities. This is a positive sign as it suggests that Fluor Corporation may have a strong ability to meet its short-term financial obligations.
Comparing the quick ratio to the previous years, we see fluctuations but with an overall improvement. The ratio was 1.57 in 2022, 1.21 in 2021, 1.34 in 2020, and 1.10 in 2019. The upward trend in the quick ratio may indicate better liquidity management, improved cash flow, or more efficient current asset management.
However, it is important to note that while a quick ratio above 1.0 generally indicates that a company can cover its short-term liabilities, the ideal quick ratio threshold may vary by industry. Further analysis of the company's cash flow, working capital management, and overall financial health would provide a more comprehensive understanding of Fluor Corporation's liquidity position.
Peer comparison
Dec 31, 2023