JBTMarel Corp (JBTM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,228,400 | 483,300 | 71,700 | 78,800 | 47,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 335,100 | 288,900 | 265,600 | 333,500 | 304,400 |
| Total current liabilities | US$ in thousands | 535,500 | 484,400 | 624,000 | 549,900 | 457,500 |
| Quick ratio | 2.92 | 1.59 | 0.54 | 0.75 | 0.77 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,228,400K
+ $—K
+ $335,100K)
÷ $535,500K
= 2.92
The quick ratio of JBTMarel Corp has experienced notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio stood at 0.77, indicating that the company's liquid assets covering current liabilities were less than one, reflecting limited immediate liquidity. This ratio slightly decreased to 0.75 at the end of 2021, suggesting a marginal decline in liquidity.
By the end of 2022, the quick ratio decreased further to 0.54, indicating a weakening in the company's short-term liquidity position and suggesting that the company's liquid assets were becoming increasingly insufficient to cover its current liabilities without relying on inventory or other less liquid assets.
In a significant shift, the ratio surged to 1.59 at the close of 2023, surpassing the threshold of 1.0, which implies that the company's liquid assets now comfortably cover its current liabilities, signaling an improved liquidity position. This improvement may indicate either an increase in liquid assets, a decrease in current liabilities, or a combination of both.
The most notable change occurs by the end of 2024, with the quick ratio rising to 2.92. This substantial increase indicates a very strong liquidity position, with liquid assets nearly three times the current liabilities. Such a high ratio suggests that the company holds a considerable buffer of liquid assets relative to its short-term obligations, which could strengthen its capacity to meet immediate liabilities and navigate unforeseen financial challenges.
Overall, JBTMarel Corp's quick ratio demonstrates a substantial improvement over this four-year period, reflecting enhanced liquidity that increasingly safeguards the company's ability to meet short-term obligations without depending on inventory sales.
Peer comparison
Dec 31, 2024