Floor & Decor Holdings Inc (FND)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 187,669 | 34,382 | 9,794 | 139,444 | 307,772 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,244,190 | 1,152,010 | 1,006,760 | 1,032,020 | 698,836 |
| Quick ratio | 0.15 | 0.03 | 0.01 | 0.14 | 0.44 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($187,669K
+ $—K
+ $—K)
÷ $1,244,190K
= 0.15
The quick ratio of Floor & Decor Holdings Inc has shown a declining trend over the years. In the fiscal year ending December 31, 2020, the quick ratio was 0.44, indicating that the company had $0.44 in liquid assets available to cover each $1 of current liabilities. However, this ratio dropped to 0.14 by the end of December 31, 2021, signaling a decrease in the company's ability to meet its short-term obligations with its most liquid assets.
The trend continued to worsen in the subsequent years, with the quick ratio falling to 0.01 by December 31, 2022, suggesting that Floor & Decor Holdings Inc had only $0.01 in quick assets for every $1 of current liabilities. Although there was a slight improvement in the quick ratio to 0.03 by December 31, 2023, it remained at a very low level, indicating a continued strain on the company's short-term liquidity position.
By the end of December 31, 2024, the quick ratio increased to 0.15, showing a modest recovery from the previous year but still indicating a relatively weak liquidity position. Overall, the declining trend in the quick ratio of Floor & Decor Holdings Inc raises concerns about the company's ability to promptly meet its short-term financial obligations using its liquid assets.
Peer comparison
Dec 31, 2024