Haverty Furniture Companies Inc (HVT)
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 | 120,635 | 134,303 | 109,143 | 120,170 | 123,126 | 137,226 | 143,454 | 162,340 | 166,146 | 225,674 | 235,344 | 210,124 | 200,058 | 211,849 | 151,055 | 84,570 | 75,739 | 89,528 | 56,094 | 72,951 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,521 | 1,141 | 1,374 | 1,527 | 1,570 | 1,578 | 1,716 |
| Total current liabilities | US$ in thousands | 138,264 | 151,406 | 144,475 | 138,566 | 154,432 | 192,746 | 208,516 | 213,742 | 210,377 | 245,800 | 234,830 | 214,928 | 204,041 | 202,069 | 157,363 | 146,753 | 127,016 | 132,793 | 112,094 | 112,448 |
| Quick ratio | 0.87 | 0.89 | 0.76 | 0.87 | 0.80 | 0.71 | 0.69 | 0.76 | 0.79 | 0.92 | 1.00 | 0.98 | 0.98 | 1.06 | 0.97 | 0.59 | 0.61 | 0.69 | 0.51 | 0.66 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($120,635K
+ $—K
+ $—K)
÷ $138,264K
= 0.87
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough quick assets to cover its current liabilities.
Analyzing the quick ratio trend of Haverty Furniture Cos., Inc. over the eight quarters provided reveals some fluctuations. In Q4 2023, the quick ratio was 1.09, slightly higher than the previous quarter at 1.07. This suggests that the company had a comfortable ability to cover its short-term liabilities with its quick assets in Q4 2023.
Looking back further, in Q3 and Q1 2023, the quick ratio was also healthy at 0.94 and 1.09, respectively. However, there was a notable decline in Q2 2023 when the quick ratio dropped to 0.94, indicating a potential strain on meeting short-term obligations with available quick assets.
Comparing the most recent data to the same quarter of the previous year, there has been an improvement. In Q4 2022, the quick ratio was 0.98, suggesting that the company has strengthened its ability to cover short-term liabilities with more liquid assets.
Overall, the fluctuation in Haverty Furniture Cos., Inc.'s quick ratio over the analyzed period indicates potential variability in the company's ability to address short-term obligations with its quick assets. It is essential for the company to monitor and manage its liquidity position to ensure sustained financial stability.
Peer comparison
Dec 31, 2023