International Seaways Inc (INSW)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	157,506	126,760	243,744	97,883	199,390
Short-term investments	US$ in thousands	0	60,000	80,000	0	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	130,935	195,574	257,389	234,611	108,896
Quick ratio		1.20	0.95	1.26	0.42	1.83

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($157,506K + $0K + $—K) ÷ $130,935K
= 1.20

Based on the Quick Ratio data provided for International Seaways Inc, we can observe fluctuations in the company's short-term liquidity position over the five-year period analyzed.

On December 31, 2020, the Quick Ratio was 1.83, indicating that the company had $1.83 in highly liquid assets available to cover each dollar of current liabilities. This suggests a strong ability to meet short-term obligations without relying heavily on inventory.

However, there was a significant decline in the Quick Ratio to 0.42 on December 31, 2021, reflecting a potential liquidity challenge as the ratio was below 1. This could indicate that the company may struggle to meet its short-term liabilities without liquidating inventory or obtaining additional financing.

The Quick Ratio improved to 1.26 on December 31, 2022, and further increased to 0.95 on December 31, 2023, although it remained below the ideal threshold of 1. These ratios suggest that while the company's liquidity position had somewhat recovered, there may still be some concerns regarding its ability to cover short-term obligations without relying on inventory.

Finally, on December 31, 2024, the Quick Ratio rose to 1.20, indicating an improvement in the company's short-term liquidity position compared to the previous year. However, it is still essential for the company to monitor and manage its liquidity effectively to ensure it can meet its short-term obligations without difficulty.

In conclusion, the Quick Ratio analysis shows varying levels of short-term liquidity for International Seaways Inc over the five-year period, highlighting the importance of closely monitoring liquidity management to ensure the company's financial health and stability.