Warrior Met Coal Inc (HCC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 738,197 | 829,480 | 395,839 | 211,916 | 193,383 |
| Short-term investments | US$ in thousands | 9,030 | 8,608 | 8,505 | 8,504 | 14,675 |
| Receivables | US$ in thousands | 110,437 | 155,463 | 130,141 | 88,440 | 114,243 |
| Total current liabilities | US$ in thousands | 147,670 | 153,124 | 122,128 | 170,318 | 128,952 |
| Quick ratio | 5.81 | 6.49 | 4.38 | 1.81 | 2.50 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($738,197K
+ $9,030K
+ $110,437K)
÷ $147,670K
= 5.81
The quick ratio of Warrior Met Coal Inc has shown significant fluctuations over the past five years, ranging from a low of 2.05 in 2020 to a high of 6.66 in 2022. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.
In 2023, the quick ratio improved to 5.99 from the previous year, suggesting that the company has a sufficient level of liquid assets to cover its current liabilities. This indicates a positive trend in the company's short-term financial health. However, it is important to note that the quick ratio is relatively volatile, as seen from the fluctuations in the ratio over the years.
Overall, Warrior Met Coal Inc's quick ratio has shown improvements in recent years, indicating a better ability to meet its short-term obligations with liquid assets. Investors and stakeholders may view this positively as it signifies a stronger liquidity position for the company.
Peer comparison
Dec 31, 2023