Graco Inc (GGG)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 537,951 339,196 624,302 378,909 220,973
Short-term investments US$ in thousands — — — — —
Receivables US$ in thousands 354,439 346,010 325,132 314,946 267,345
Total current liabilities US$ in thousands 395,200 399,917 506,792 321,389 285,322
Quick ratio 2.26 1.71 1.87 2.16 1.71

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($537,951K + $—K + $354,439K) ÷ $395,200K
= 2.26

The quick ratio of Graco Inc has shown variability over the past five years. In 2023, the quick ratio improved significantly to 2.26, indicating a strong ability to meet short-term obligations with quick assets. This increase from the previous year's 1.71 suggests an enhanced liquidity position.

While in 2022 the quick ratio was 1.71, it improved to 1.87 in 2021, before further increasing to 2.16 in 2020, reflecting a consistent trend of maintaining a healthy liquidity position over the years. The quick ratio was also 1.71 in 2019, demonstrating stability in maintaining short-term liquidity adequacy.

Overall, an upward trend in the quick ratio indicates that Graco Inc has been effectively managing its liquidity and maintaining a strong ability to meet its short-term liabilities with its quick assets. This trend suggests a prudent approach to financial management by ensuring sufficient liquid assets are available to cover immediate obligations.