Lennox International Inc (LII)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 60,700 | 132,000 | 51,400 | 40,400 | 52,600 | 40,700 | 57,400 | 34,300 | 31,000 | 39,400 | 44,500 | 35,500 | 123,900 | 55,000 | 44,800 | 39,100 | 37,300 | 46,100 | 36,400 | 31,700 |
| Short-term investments | US$ in thousands | 8,400 | 9,600 | 7,200 | 7,100 | 8,500 | 7,500 | 5,300 | 5,700 | 5,500 | 4,900 | 2,800 | 4,500 | 5,100 | 4,100 | 3,800 | 3,700 | 2,900 | 2,400 | 1,800 | — |
| Receivables | US$ in thousands | 594,600 | 694,800 | 843,600 | 642,500 | 608,500 | 708,400 | 782,600 | 603,000 | 508,300 | 580,600 | 692,500 | 522,600 | 448,300 | 542,700 | 624,200 | 492,700 | 477,800 | 622,200 | 718,800 | 502,600 |
| Total current liabilities | US$ in thousands | 1,014,600 | 1,255,000 | 1,741,900 | 1,526,400 | 1,595,700 | 931,700 | 967,700 | 859,400 | 827,100 | 1,100,400 | 1,057,800 | 849,100 | 701,300 | 711,000 | 946,200 | 894,600 | 1,002,700 | 1,109,900 | 1,075,000 | 917,400 |
| Quick ratio | 0.65 | 0.67 | 0.52 | 0.45 | 0.42 | 0.81 | 0.87 | 0.75 | 0.66 | 0.57 | 0.70 | 0.66 | 0.82 | 0.85 | 0.71 | 0.60 | 0.52 | 0.60 | 0.70 | 0.58 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($60,700K
+ $8,400K
+ $594,600K)
÷ $1,014,600K
= 0.65
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 of less than 1 indicates that the company may have difficulty meeting its immediate liabilities.
Analyzing the quick ratio of Lennox International Inc over the past eight quarters, we observe some fluctuations. In Q4 2023 and Q3 2023, the quick ratio remained stable at 0.72, indicating that the company had $0.72 in liquid assets available to cover each dollar of current liabilities. This suggests a relatively healthy liquidity position.
However, in Q2 2023 and Q1 2023, the quick ratio decreased to 0.56 and 0.50, respectively, signaling a decrease in the company's ability to meet its short-term obligations with its liquid assets. This may raise concerns about the company's liquidity position during those quarters.
Comparing the current quick ratio to the same quarter in the previous year, we can see a significant decline from Q4 2022 to Q1 2022 (from 0.47 to 0.88). This substantial drop could indicate potential challenges in managing short-term liabilities and liquid assets.
Overall, while Lennox International Inc has shown some stability in its quick ratio in recent quarters, management should continue to monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023