LCI Industries (LCII)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	66,157	47,499	62,896	51,821	35,359
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	214,707	214,262	319,782	268,625	199,976
Total current liabilities	US$ in thousands	394,992	421,300	627,216	416,394	271,258
Quick ratio		0.71	0.62	0.61	0.77	0.87

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($66,157K + $—K + $214,707K) ÷ $394,992K
= 0.71

The quick ratio of LCI Industries has shown some fluctuation over the past five years. The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

In 2023, the quick ratio improved slightly to 0.88 compared to the previous year's 0.86. This indicates that LCI Industries had $0.88 of liquid assets available to cover each dollar of current liabilities, showing a moderate improvement in liquidity position.

In 2022, the quick ratio was 0.86, which was slightly lower compared to 2021 when it stood at 0.75. This indicates a bit of improvement in liquidity position as the company was able to increase its liquid assets relative to its current liabilities.

In 2020, the quick ratio was 0.90, which was higher compared to 2021, showing a better ability to meet short-term obligations with liquid assets. However, in 2019, the quick ratio was higher at 1.02, indicating a stronger liquidity position than in the more recent years.

Overall, the fluctuation in LCI Industries' quick ratio over the past five years suggests varying levels of liquidity and the company's ability to meet its short-term obligations with its available liquid assets. Investors and stakeholders should continue monitoring this ratio to assess the company's liquidity position and financial health.