MasterBrand Inc. (MBC)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 148,700 | 122,500 | 110,200 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 203,000 | 233,600 | 235,700 |
| Total current liabilities | US$ in thousands | 349,400 | 367,900 | 374,400 |
| Quick ratio | 1.01 | 0.97 | 0.92 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($148,700K
+ $—K
+ $203,000K)
÷ $349,400K
= 1.01
The quick ratio of MasterBrand Inc. has shown a declining trend over the three quarters presented. As of December 31, 2023, the quick ratio stands at 1.01, indicating that the company has $1.01 in liquid assets available to cover each dollar of current liabilities. This suggests a healthy liquidity position, as the quick ratio is above 1, signifying that the company can meet its short-term obligations with its most liquid assets.
However, the quick ratio decreased from 1.01 in September 30, 2023, to 0.97 in that quarter and further declined to 0.92 by June 30, 2023. This downward trend may raise concerns about the company's ability to cover its short-term liabilities with its quick assets in the near term. It could indicate potential liquidity challenges or inefficient management of working capital during the period.
Overall, while MasterBrand Inc. has maintained a quick ratio above 1, indicating a generally healthy liquidity position, the trend of declining quick ratios over the three quarters raises a red flag and warrants further investigation into the company's liquidity management practices.
Peer comparison
Dec 31, 2023