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.