Koppers Holdings Inc (KOP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 43,900 | 66,500 | 33,300 | 45,500 | 38,500 |
| Short-term investments | US$ in thousands | — | 2,800 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 325,800 | 325,900 | 324,000 | 285,700 | 292,100 |
| Quick ratio | 0.13 | 0.21 | 0.10 | 0.16 | 0.13 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($43,900K
+ $—K
+ $—K)
÷ $325,800K
= 0.13
The quick ratio of Koppers Holdings Inc has exhibited notable fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at a low of 0.13, indicating the company may have had difficulty meeting its short-term obligations with its most liquid assets at that time. However, over the following years, there was an improvement in the quick ratio, with a modest increase to 0.16 by December 31, 2021, suggesting a better ability to cover short-term liabilities with quick assets.
Interestingly, the quick ratio dropped to 0.10 by December 31, 2022, indicating a potential struggle to meet immediate financial obligations with liquid assets. Nevertheless, the ratio saw a significant improvement by reaching 0.21 by December 31, 2023, signaling a stronger liquidity position and enhanced ability to settle short-term debts.
However, by December 31, 2024, the quick ratio decreased once again to 0.13, falling back to a level similar to that of 2020. This suggests a potential regression in the company's ability to quickly cover its current liabilities with its liquid assets.
In conclusion, the quick ratio of Koppers Holdings Inc has shown fluctuations over the years, depicting varying degrees of liquidity and ability to meet short-term obligations with its readily available assets. Further analysis of the company's financial performance and liquidity management practices would be beneficial to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2024