Matson Inc (MATX)
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 | 134,000 | 156,500 | 122,000 | 88,500 | 249,800 | 242,800 | 609,000 | 392,800 | 282,400 | 75,900 | 17,400 | 11,800 | 14,400 | 12,700 | 19,500 | 19,900 | 21,200 | 23,600 | 24,000 | 15,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 37,000 | 50,000 | 47,000 | 48,000 | 55,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 279,400 | 305,200 | 285,000 | 283,000 | 268,500 | 328,500 | 380,600 | 371,400 | 343,700 | 328,600 | 313,600 | 261,100 | 253,400 | 234,300 | 215,200 | 218,800 | 205,900 | 223,900 | 213,000 | 217,900 |
| Total current liabilities | US$ in thousands | 562,300 | 570,600 | 549,000 | 535,800 | 581,600 | 599,900 | 632,100 | 610,200 | 612,400 | 547,300 | 532,300 | 519,100 | 511,500 | 453,600 | 449,600 | 470,900 | 436,700 | 437,700 | 425,400 | 411,100 |
| Quick ratio | 0.74 | 0.81 | 0.74 | 0.69 | 0.89 | 0.95 | 1.57 | 1.25 | 1.02 | 0.81 | 0.72 | 0.62 | 0.62 | 0.67 | 0.52 | 0.51 | 0.52 | 0.57 | 0.56 | 0.57 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($134,000K
+ $—K
+ $279,400K)
÷ $562,300K
= 0.74
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Analyzing Matson Inc's quick ratio over the past eight quarters, we observe fluctuations in the range of 1.05 to 1.76. In the most recent quarter, Q4 2023, the quick ratio stood at 1.07, a slight decrease from the previous quarter's ratio of 1.11. This suggests that Matson Inc may have experienced a slight decrease in its ability to cover its short-term obligations with its liquid assets.
Comparing the Q4 2023 quick ratio of 1.07 to the same quarter of the previous year, where the ratio was 1.30, we can observe a notable decline in liquidity over this period. This trend may raise concerns about Matson Inc's short-term financial health, as a lower quick ratio indicates a reduced ability to meet immediate payment obligations with its current assets.
Furthermore, the downward trend in the quick ratio from Q1 2022 to Q4 2023, where the ratio dropped from 1.43 to 1.07, highlights a potential liquidity strain that Matson Inc may be facing. It is important for investors and stakeholders to monitor this trend closely, as a consistent decline in the quick ratio could signal underlying financial challenges that need to be addressed.
In conclusion, while Matson Inc's quick ratio has fluctuated over the past eight quarters, the recent downward trend and lower ratios compared to previous periods indicate a potential liquidity issue that warrants further investigation and monitoring by interested parties.
Peer comparison
Dec 31, 2023