Forward Air Corporation (FWRD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 104,903 | 121,969 | 45,822 | 37,316 | 40,254 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 384,046 | 237,094 | 169,398 | 164,692 | 172,052 |
| Quick ratio | 0.27 | 0.51 | 0.27 | 0.23 | 0.23 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($104,903K
+ $—K
+ $—K)
÷ $384,046K
= 0.27
The quick ratio of Forward Air Corporation has shown some fluctuations over the years. As of December 31, 2020, and December 31, 2021, the quick ratio stood at 0.23, indicating that the company's current assets may not be sufficient to cover its current liabilities. However, there was a slight improvement by December 31, 2022, with the quick ratio increasing to 0.27.
The significant increase in the quick ratio to 0.51 as of December 31, 2023, suggests that Forward Air Corporation had a stronger ability to meet its short-term obligations with its quick assets. This improvement could be attributed to better management of current assets and liabilities.
By December 31, 2024, the quick ratio fell back to 0.27, potentially indicating a decrease in the company's liquidity compared to the previous year. It would be important to assess the reasons behind this drop and monitor the trend in subsequent periods to understand the company's liquidity position better.
Overall, while there have been fluctuations in the quick ratio of Forward Air Corporation, the improvement seen in 2023 indicates a positive trend in the company's ability to meet its short-term obligations with its liquid assets.
Peer comparison
Dec 31, 2024