IDEXX Laboratories Inc (IDXX)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 453,932 112,546 144,454 383,928 90,326
Short-term investments US$ in thousands
Receivables US$ in thousands 474,417 449,049 387,812 350,905 289,828
Total current liabilities US$ in thousands 951,547 1,235,800 763,579 582,761 725,337
Quick ratio 0.98 0.45 0.70 1.26 0.52

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($453,932K + $—K + $474,417K) ÷ $951,547K
= 0.98

The quick ratio of Idexx Laboratories, Inc. has shown varying trends over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

In 2023, the quick ratio improved significantly to 1.17 compared to the previous year, indicating that the company had $1.17 in liquid assets available to cover each dollar of current liabilities. This is a positive sign as it suggests the company has a strong liquidity position to meet its short-term obligations.

However, looking at the trend over the past five years, the quick ratio has been somewhat inconsistent. In 2022, the quick ratio was quite low at 0.59, indicating potentially lower liquidity and a potential struggle to meet short-term obligations. This was a significant drop from the previous year's quick ratio of 0.90.

In 2021, the quick ratio improved to 0.90, showing better liquidity compared to the previous year. In 2020, the quick ratio was the highest at 1.46, indicating a significant improvement in liquidity and the company's ability to cover its short-term liabilities comfortably.

In contrast, in 2019, the quick ratio was relatively low at 0.67, suggesting a weaker liquidity position compared to the following years.

Overall, while there have been fluctuations in the quick ratio over the past five years, the latest improvement in 2023 indicates a stronger liquidity position for Idexx Laboratories, Inc. It is important for investors and stakeholders to continue monitoring this ratio to assess the company's short-term liquidity risk.


Peer comparison

Dec 31, 2023