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.