Graco Inc (GGG)

Quick ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash US$ in thousands 537,951 525,785 520,633 395,313 339,196 414,827 413,359 380,487 624,302 603,828 482,787 460,616 378,909 424,674 432,708 456,656 220,973 177,306 180,883 119,711
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Receivables US$ in thousands 354,439 352,505 365,818 356,473 346,010 364,073 373,141 339,407 325,132 324,284 354,222 323,197 314,946 314,996 282,856 273,789 267,345 277,417 291,008 289,047
Total current liabilities US$ in thousands 395,200 395,888 489,338 381,698 399,917 430,768 424,058 402,313 506,792 427,214 358,724 323,520 321,389 326,453 310,380 311,763 285,322 287,527 359,602 354,044
Quick ratio 2.26 2.22 1.81 1.97 1.71 1.81 1.85 1.79 1.87 2.17 2.33 2.42 2.16 2.27 2.31 2.34 1.71 1.58 1.31 1.15

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.

Analyzing Graco Inc's quick ratio over the past few quarters, we observe fluctuations. The ratio has generally remained above 1, suggesting the company's ability to meet its short-term obligations.

In the latest quarter, the quick ratio was 2.26, indicating a strong ability to cover current liabilities with liquid assets. The trend shows some variability but generally favorable liquidity levels.

It is important to note that a quick ratio of over 1 does not necessarily mean that a company is in good financial health, as it does not consider inventory and prepaid expenses. Therefore, it is advisable to consider other metrics and ratios in conjunction with the quick ratio to assess Graco Inc's overall financial health accurately.