Innovex International, Inc (INVX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 73,278 | 7,406 | 8,416 | 9,736 | 345,955 |
| Short-term investments | US$ in thousands | — | 25,908 | 32,232 | — | — |
| Receivables | US$ in thousands | 266,343 | 118,360 | 126,234 | 82,665 | 256,520 |
| Total current liabilities | US$ in thousands | 162,658 | 117,703 | 85,020 | 69,571 | 85,512 |
| Quick ratio | 2.09 | 1.29 | 1.96 | 1.33 | 7.05 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($73,278K
+ $—K
+ $266,343K)
÷ $162,658K
= 2.09
The analysis of Innovex International, Inc.'s quick ratio over the period from December 31, 2020, through December 31, 2024, reveals notable fluctuations in the company's short-term liquidity position. At the end of 2020, the quick ratio was exceptionally high at 7.05, indicating a substantial level of liquid assets relative to current liabilities. This figure suggests that the company possessed ample immediate liquidity to meet its short-term obligations without the need to convert inventory or other less liquid assets.
By December 31, 2021, the quick ratio experienced a significant decline to 1.33. Despite this decrease, the ratio remained above 1.0, reflecting that the company's liquid assets were still adequate to cover its current liabilities, though the margin had been considerably narrowed compared to the prior year.
The subsequent year, December 31, 2022, saw the quick ratio increase modestly to 1.96. This uptick suggests an improvement in the company's liquid asset position, potentially due to strategic adjustments in cash management or receivables collection, thereby enhancing liquidity without relying on inventory liquidation.
However, by December 31, 2023, the quick ratio decreased again to 1.29, approaching the lower bounds of liquidity comfort. While still above 1.0, this decline indicates that the company's short-term liquidity had diminished relative to the prior year, possibly signaling increased reliance on inventory or pending collection challenges.
Most recently, as of December 31, 2024, the quick ratio rebounded to 2.09. This increase signifies an improvement in the company's immediate liquidity position, affording a more comfortable cushion to meet short-term liabilities solely through liquid assets.
Overall, the company's quick ratio has demonstrated considerable volatility over the examined period. While the ratio generally remained above 1.0, indicative of adequate short-term liquidity, the fluctuations underscore periods of tightening financial flexibility that may warrant further investigation to determine underlying causes such as changes in cash holdings, receivables, or current liabilities.
Peer comparison
Dec 31, 2024