Huntington Ingalls Industries Inc (HII)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 430,000 | 467,000 | 627,000 | 512,000 | 75,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 644,000 | 806,000 | 642,000 | 568,000 | 466,000 |
| Total current liabilities | US$ in thousands | 3,032,000 | 2,895,000 | 2,427,000 | 2,226,000 | 1,890,000 |
| Quick ratio | 0.35 | 0.44 | 0.52 | 0.49 | 0.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($430,000K
+ $—K
+ $644,000K)
÷ $3,032,000K
= 0.35
The quick ratio of Huntington Ingalls Industries Inc over the past five years has shown some fluctuations. The ratio indicates the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of less than 1 suggests that the company may have difficulty in meeting its short-term liabilities with its current liquid assets alone.
In 2023 and 2022, the quick ratio remained stable at 0.89, which indicates that the company's ability to cover its short-term liabilities with its quick assets has not significantly improved over those years. The quick ratio was highest in 2021 at 1.08, indicating an improvement in the company's liquidity position. However, in 2020 and 2019, the quick ratio dropped to 0.98 and 0.82, respectively, indicating a tighter liquidity position during those years.
Overall, the quick ratio trend for Huntington Ingalls Industries Inc shows some inconsistency, with fluctuations over the years. It is important for the company to consistently monitor its liquidity position and ensure it has sufficient liquid assets to cover its short-term obligations.
Peer comparison
Dec 31, 2023