Floor & Decor Holdings Inc (FND)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 34,382 | 9,794 | 139,444 | 307,772 | 27,037 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 27,870 | 7,325 | 3,507 | — | 2,868 |
| Total current liabilities | US$ in thousands | 1,152,010 | 1,006,760 | 1,032,020 | 698,836 | 552,541 |
| Quick ratio | 0.05 | 0.02 | 0.14 | 0.44 | 0.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($34,382K
+ $—K
+ $27,870K)
÷ $1,152,010K
= 0.05
The quick ratio of Floor & Decor Holdings Inc has fluctuated significantly over the past five years. In 2023, the quick ratio was 0.05, which indicates that the company's ability to meet its short-term obligations with its most liquid assets was quite low. This suggests a potential liquidity concern as the company may struggle to cover its current liabilities with readily available assets.
The quick ratio in 2022 was even lower at 0.02, reflecting a further deterioration in the company's short-term liquidity position. This could raise red flags for investors and creditors as it indicates an even greater difficulty for the company in meeting its short-term obligations.
In 2021, the quick ratio improved to 0.14, indicating a slight increase in the company's ability to meet its short-term liabilities with its quick assets. However, the ratio remained relatively low compared to industry benchmarks, suggesting that the company may still face challenges in covering its short-term obligations.
The quick ratio reached its highest level in the past five years in 2020 at 0.44, indicating a significant improvement in the company's short-term liquidity position. This suggests that Floor & Decor Holdings Inc had a stronger ability to cover its current liabilities with its most liquid assets during that year.
In 2019, the quick ratio dropped back to 0.05, returning to a similar level as seen in 2023. This decrease may indicate potential liquidity challenges for the company, as it struggled once again to meet its short-term obligations with its quick assets.
Overall, the fluctuating trend in the quick ratio of Floor & Decor Holdings Inc over the past five years reflects varying levels of short-term liquidity challenges for the company. Investors and stakeholders should closely monitor this ratio to assess the company's ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023