Koppers Holdings Inc (KOP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 66,500 | 33,300 | 45,500 | 38,500 | 32,300 |
| Short-term investments | US$ in thousands | — | — | — | — | 700 |
| Receivables | US$ in thousands | 202,400 | 215,700 | 182,800 | 176,300 | 165,800 |
| Total current liabilities | US$ in thousands | 325,900 | 324,000 | 285,700 | 292,100 | 296,200 |
| Quick ratio | 0.83 | 0.77 | 0.80 | 0.74 | 0.67 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($66,500K
+ $—K
+ $202,400K)
÷ $325,900K
= 0.83
The quick ratio of Koppers Holdings Inc has shown some fluctuations over the past five years. It decreased from 0.74 in 2019 to 0.92 in 2020, then increased to 1.10 in 2021, followed by a decrease to 0.87 in 2022, and finally, it decreased slightly to 0.93 in 2023.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets. The fluctuations in the quick ratio suggest variability in the company's ability to cover its current liabilities without relying on inventory.
Overall, while the quick ratio has been relatively close to 1 in recent years, indicating some ability to meet short-term obligations, investors and stakeholders should monitor this ratio to ensure the company's liquidity position remains stable.
Peer comparison
Dec 31, 2023