Harley-Davidson Inc (HOG)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,533,810 | 1,878,350 | 1,521,940 | 1,561,200 | 1,433,180 | 1,730,250 | 2,194,260 | 1,393,730 | 1,874,740 | 2,061,300 | 1,741,970 | 2,320,640 | 3,257,200 | 3,560,950 | 3,856,600 | 1,465,060 | 833,868 | 862,381 | 924,638 | 749,600 |
| Short-term investments | US$ in thousands | 34,079 | 32,664 | 35,175 | 34,017 | 33,071 | 33,631 | 38,779 | 45,189 | 49,650 | 48,766 | 52,434 | 50,239 | 52,061 | 48,845 | 48,725 | 44,144 | 52,575 | 49,821 | 51,543 | 49,896 |
| Receivables | US$ in thousands | 267,200 | 2,417,300 | 2,309,130 | 2,579,160 | 252,225 | 2,108,170 | 1,977,020 | 1,953,930 | 1,647,690 | 1,823,450 | 1,893,090 | 2,014,760 | 1,652,620 | 1,934,320 | 2,173,050 | 2,658,140 | 2,531,860 | 2,517,620 | 2,687,430 | 2,797,440 |
| Total current liabilities | US$ in thousands | 3,384,260 | 2,672,820 | 2,466,460 | 3,084,580 | 3,533,910 | 3,679,910 | 3,675,900 | 3,283,260 | 3,342,890 | 3,430,110 | 3,451,150 | 3,454,600 | 3,981,950 | 4,217,430 | 4,655,100 | 4,580,070 | 3,196,770 | 3,698,750 | 3,742,250 | 3,590,060 |
| Quick ratio | 0.54 | 1.62 | 1.57 | 1.35 | 0.49 | 1.05 | 1.15 | 1.03 | 1.07 | 1.15 | 1.07 | 1.27 | 1.25 | 1.31 | 1.31 | 0.91 | 1.07 | 0.93 | 0.98 | 1.00 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing quick assets (current assets excluding inventory) by current liabilities.
Analyzing the quick ratios of Harley-Davidson, Inc. over the past eight quarters, we observe fluctuations within a relatively narrow range. In Q4 2023, the quick ratio was 0.21, slightly lower than the previous quarter (Q3 2023) at 0.23. This indicates that the company had $0.21 in quick assets available to cover each dollar of current liabilities.
Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), we see a slight improvement from 0.20 to 0.21. However, it is essential to note that the quick ratio has been generally low over the past two years, fluctuating between 0.13 and 0.23.
A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations using only its quick assets. Harley-Davidson's ratios indicate a limited ability to cover immediate liabilities with liquid assets. This may raise concerns about the company's liquidity and ability to handle short-term financial commitments. Continued monitoring of the quick ratio and further analysis of the components contributing to it would be prudent to assess the company's financial health effectively.
Peer comparison
Dec 31, 2023