Forward Air Corporation (FWRD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 121,969 | 45,822 | 37,316 | 40,254 | 64,749 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 158,675 | 221,028 | 216,182 | 156,490 | 150,197 |
| Total current liabilities | US$ in thousands | 237,094 | 169,398 | 164,692 | 171,620 | 137,164 |
| Quick ratio | 1.18 | 1.58 | 1.54 | 1.15 | 1.57 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($121,969K
+ $—K
+ $158,675K)
÷ $237,094K
= 1.18
The quick ratio of Forward Air Corporation has fluctuated over the past five years. The ratio was at its highest in 2022 at 1.58, indicating the company had $1.58 of liquid assets available to cover each dollar of current liabilities. In 2021 and 2019, the quick ratio was relatively stable at 1.54 and 1.57 respectively, suggesting a healthy level of liquidity.
However, the ratio decreased significantly in 2020 to 1.15, indicating a potential liquidity concern as the company had $1.15 of quick assets available for every dollar of current liabilities. The quick ratio improved in 2023 to 1.18 but still remains below the levels seen in 2022, 2021, and 2019.
Overall, the quick ratio trend for Forward Air Corporation shows some variability, with the company maintaining adequate liquidity levels in most years, except for a dip in 2020. It would be important to monitor this ratio closely to ensure the company can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023