Flowserve Corporation (FLS)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 545,678 434,971 658,452 1,095,270 670,980
Short-term investments US$ in thousands
Receivables US$ in thousands 895,928 884,663 763,404 757,745 795,538
Total current liabilities US$ in thousands 1,438,580 1,243,150 1,131,800 1,141,630 1,117,440
Quick ratio 1.00 1.06 1.26 1.62 1.31

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($545,678K + $—K + $895,928K) ÷ $1,438,580K
= 1.00

The quick ratio of Flowserve Corp. has shown fluctuations over the past five years. In 2023, the quick ratio decreased to 1.27 from 1.33 in 2022. This downward trend indicates that the company may have slightly less liquidity to cover its short-term obligations using its most liquid assets in 2023 compared to the previous year.

However, it's worth noting that despite the decrease in 2023, the quick ratio still remains above the ideal benchmark of 1, suggesting that Flowserve Corp. is in a relatively strong position to meet its short-term liabilities with its quick assets.

Comparing to the quick ratios of the preceding years, a decreasing trend can be observed since 2020 when the quick ratio was at its highest at 1.96, followed by decreases to 1.66 in 2019. This decline may indicate a potential decrease in the company's liquidity position over the years.

In conclusion, while the recent decrease in the quick ratio of Flowserve Corp. could signify a slight liquidity challenge in the short term, the company generally maintains a healthy liquidity position as indicated by the quick ratio consistently above 1.


Peer comparison

Dec 31, 2023