IDEX Corporation (IEX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 534,300 | 430,200 | 855,400 | 1,025,900 | 632,581 |
| Short-term investments | US$ in thousands | — | — | 45,300 | — | — |
| Receivables | US$ in thousands | 427,800 | 442,800 | 356,400 | 293,100 | 298,186 |
| Total current liabilities | US$ in thousands | 500,300 | 543,600 | 480,000 | 399,000 | 357,877 |
| Quick ratio | 1.92 | 1.61 | 2.62 | 3.31 | 2.60 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($534,300K
+ $—K
+ $427,800K)
÷ $500,300K
= 1.92
The quick ratio of Idex Corporation has experienced fluctuations over the past five years. The ratio stood at 2.05 as of December 31, 2023, indicating that the company had $2.05 of highly liquid assets available to cover each dollar of current liabilities. Compared to the previous year, the quick ratio has improved from 1.71 to 2.05, reflecting a stronger ability to meet short-term obligations using liquid assets.
When observing the trend over the five-year period, there was a notable decline in the quick ratio from 3.43 in 2020 to 1.71 in 2022, suggesting a potential liquidity concern during that period. However, the ratio rebounded to 2.05 in 2023, albeit still below the levels seen in 2020 and 2019.
The quick ratio exceeding 1 indicates that Idex Corporation has an adequate level of quick assets relative to its current liabilities, providing a buffer for unforeseen circumstances or obligations. Investors and creditors typically view a quick ratio above 1 as a positive sign of short-term liquidity and financial health. While the recent improvement in the quick ratio is positive, further monitoring of this ratio is recommended to ensure the company's liquidity position remains sound.
Peer comparison
Dec 31, 2023