Green Plains Renewable Energy Inc (GPRE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	349,574	444,661	426,220	233,860	245,977
Short-term investments	US$ in thousands	—	0	124,859	3,994	—
Receivables	US$ in thousands	95,268	109,896	120,872	56,229	113,399
Total current liabilities	US$ in thousands	384,962	486,922	471,804	452,556	541,791
Quick ratio		1.16	1.14	1.42	0.65	0.66

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($349,574K + $—K + $95,268K) ÷ $384,962K
= 1.16

The quick ratio of Green Plains Inc has shown fluctuations over the past five years. In 2023, the quick ratio is 1.27, which indicates the company has $1.27 in liquid assets available to cover each dollar of current liabilities. This shows an improvement compared to the previous year (1.22 in 2022). The quick ratio was notably strong in 2021 at 1.52, suggesting a comfortable liquidity position.

However, in 2020 and 2019, the quick ratio was below 1, indicating potential liquidity concerns as the company had less liquid assets to cover its short-term liabilities. It is worth noting that a quick ratio below 1 may suggest difficulties in meeting short-term obligations.

Overall, the recent trend of increasing quick ratios demonstrates an improved ability for Green Plains Inc to meet its short-term financial obligations from its liquid assets. This analysis indicates a positive liquidity position for the company in the current year.