IDEX Corporation (IEX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 620,800 | 534,300 | 430,200 | 855,400 | 1,025,850 |
| Short-term investments | US$ in thousands | — | 0 | — | 45,300 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 629,700 | 500,300 | 543,600 | 480,000 | 399,058 |
| Quick ratio | 0.99 | 1.07 | 0.79 | 1.88 | 2.57 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($620,800K
+ $—K
+ $—K)
÷ $629,700K
= 0.99
Based on the provided data, the quick ratio of IDEX Corporation has exhibited fluctuations over the past five years. In December 31, 2020, the quick ratio stood at a healthy level of 2.57, indicating a strong ability to meet short-term obligations with its most liquid assets. However, by December 31, 2022, the quick ratio had decreased significantly to 0.79, potentially signaling a potential liquidity issue or increased short-term debt obligations.
In the subsequent years, the quick ratio showed some improvement, reaching 1.88 by December 31, 2021, 1.07 by December 31, 2023, and 0.99 by December 31, 2024. Despite the improvements in the later years, the quick ratio still remained below the ideal benchmark of 1.0, suggesting that IDEX Corporation may need to closely monitor its liquidity position and manage its short-term obligations effectively.
Overall, the analysis of IDEX Corporation's quick ratio highlights the importance of maintaining a healthy liquidity position to ensure the company's ability to meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024