Huntington Ingalls Industries Inc (HII)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 831,000 | 430,000 | 467,000 | 627,000 | 512,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 416,000 | 644,000 | 806,000 | 642,000 | 568,000 |
| Total current liabilities | US$ in thousands | 2,991,000 | 3,032,000 | 2,895,000 | 2,427,000 | 2,226,000 |
| Quick ratio | 0.42 | 0.35 | 0.44 | 0.52 | 0.49 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($831,000K
+ $—K
+ $416,000K)
÷ $2,991,000K
= 0.42
The quick ratio of Huntington Ingalls Industries Inc has exhibited fluctuations over the past five years. Starting at 0.49 in December 2020, it increased to 0.52 in December 2021. However, in the subsequent years, the ratio experienced a declining trend, dropping to 0.44 in December 2022, further decreasing to 0.35 in December 2023, and then slightly rebounding to 0.42 by December 2024.
The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current quick assets. Huntington Ingalls Industries Inc's quick ratio has been below 1 in all the reported years, suggesting potential liquidity concerns. The downward trend in the ratio from 2021 to 2023 raises concerns about the company's ability to cover its short-term obligations. The slight improvement in 2024 is a positive sign, but the ratio still remains below 1, signaling the need for continued monitoring of the company's liquidity position.
Peer comparison
Dec 31, 2024