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.
Peer comparison
Dec 31, 2023