Keurig Dr Pepper Inc (KDP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 267,000 | 535,000 | 567,000 | 240,000 | 75,000 |
| Short-term investments | US$ in thousands | — | 49,000 | 2,000 | 88,000 | 1,000 |
| Receivables | US$ in thousands | 1,519,000 | 1,668,000 | 1,274,000 | 1,144,000 | 1,184,000 |
| Total current liabilities | US$ in thousands | 8,916,000 | 8,076,000 | 6,485,000 | 7,694,000 | 6,474,000 |
| Quick ratio | 0.20 | 0.28 | 0.28 | 0.19 | 0.19 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($267,000K
+ $—K
+ $1,519,000K)
÷ $8,916,000K
= 0.20
The quick ratio of Keurig Dr Pepper Inc has shown some fluctuation in recent years. The quick ratio measures the company's ability to meet its short-term financial obligations with its most liquid assets. A higher quick ratio indicates a better ability to cover short-term liabilities.
In 2023, the quick ratio was 0.25, indicating that the company may have difficulty meeting its short-term obligations with its liquid assets alone. However, it improved from the previous year's ratio of 0.31. The upward trend from 2020 to 2022 shows an improvement in the company's liquidity position.
Overall, the quick ratio of Keurig Dr Pepper Inc has been below 1 over the past five years, suggesting potential liquidity challenges. It's important for the company to continue monitoring and managing its liquidity to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023