IDEXX Laboratories Inc (IDXX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 288,266 | 453,932 | 112,546 | 144,454 | 383,928 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,067,920 | 951,547 | 1,235,800 | 763,579 | 582,761 |
| Quick ratio | 0.27 | 0.48 | 0.09 | 0.19 | 0.66 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($288,266K
+ $—K
+ $—K)
÷ $1,067,920K
= 0.27
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. A quick ratio below 1 may indicate potential liquidity issues.
IDEXX Laboratories Inc's quick ratio has shown fluctuations over the years. As of December 31, 2020, the quick ratio was 0.66, indicating that the company had $0.66 in liquid assets available to cover each dollar of its current liabilities. This suggests a reasonable ability to meet short-term obligations.
However, by December 31, 2021, the quick ratio dropped significantly to 0.19. This sharp decrease may raise concerns about the company's liquidity position and its ability to fulfill immediate financial obligations using its quick assets.
The quick ratio continued to decrease to 0.09 by December 31, 2022, reflecting a further deterioration in the company's ability to cover short-term liabilities with liquid assets. This significant decline could signal potential liquidity challenges that may require closer monitoring and management action.
On December 31, 2023, the quick ratio improved to 0.48, indicating some recovery in the company's liquidity position compared to the previous year. This increase suggests a better ability to meet short-term obligations with available liquid assets.
However, by December 31, 2024, the quick ratio decreased again to 0.27. While this value is higher than in 2022, it remains below 1, indicating that IDEXX Laboratories Inc may still have some challenges in meeting its short-term obligations with its quick assets.
Overall, the fluctuations in IDEXX Laboratories Inc's quick ratio over the years highlight the importance of closely monitoring liquidity positions and managing short-term financial obligations effectively to ensure financial stability and operational continuity.
Peer comparison
Dec 31, 2024