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.
Peer comparison
Dec 31, 2023