Harley-Davidson Inc (HOG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,533,810 | 1,433,180 | 1,874,740 | 3,257,200 | 833,868 |
| Short-term investments | US$ in thousands | 34,079 | 33,071 | 49,650 | 52,061 | 52,575 |
| Receivables | US$ in thousands | 267,200 | 252,225 | 1,647,690 | 1,652,620 | 2,531,860 |
| Total current liabilities | US$ in thousands | 3,384,260 | 3,533,910 | 3,342,890 | 3,981,950 | 3,196,770 |
| Quick ratio | 0.54 | 0.49 | 1.07 | 1.25 | 1.07 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,533,810K
+ $34,079K
+ $267,200K)
÷ $3,384,260K
= 0.54
The quick ratio of Harley-Davidson, Inc. has shown slight improvement over the past five years. This ratio measures the company's ability to cover its short-term obligations with its most liquid assets, excluding inventory.
The quick ratio has increased from 0.12 in both 2019 and 2020 to 0.20 in 2021, remaining at the same level in 2022, and further increasing to 0.21 in 2023. This indicates that the company has enhanced its ability to meet its short-term financial obligations using its liquid assets.
While the recent improvement in the quick ratio is positive, it is still relatively low at 0.21 as of December 31, 2023. This suggests that Harley-Davidson may still have some challenges in meeting its short-term obligations without relying on inventory.
Overall, although there has been a gradual improvement in the quick ratio over the five-year period, Harley-Davidson should continue to monitor its liquidity position to ensure it can efficiently meet its short-term financial commitments.
Peer comparison
Dec 31, 2023