Mercer International Inc (MERC)
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 | 313,992 | 343,725 | 213,338 | 300,560 | 354,032 | 287,254 | 419,861 | 410,705 | 345,610 | 338,730 | 384,534 | 395,083 | 361,098 | 345,580 | 303,334 | 286,526 | 351,085 | 264,899 | 257,322 | 233,234 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 75,000 | 75,000 | — | — | 43,341 | 45,844 | 46,616 | 46,429 | 47,865 | 48,413 | — | — | — | — | — |
| Receivables | US$ in thousands | 306,166 | 266,927 | 335,402 | 345,193 | 351,993 | 324,343 | 308,067 | 387,779 | 383,298 | 253,731 | 225,238 | 237,318 | 227,055 | 202,619 | 209,184 | 221,921 | 208,740 | 228,154 | 273,502 | 308,573 |
| Total current liabilities | US$ in thousands | 286,437 | 267,866 | 370,464 | 382,678 | 378,061 | 323,093 | 273,904 | 281,184 | 283,124 | 256,491 | 265,364 | 230,183 | 211,796 | 200,716 | 196,954 | 185,143 | 256,312 | 204,057 | 223,103 | 212,256 |
| Quick ratio | 2.17 | 2.28 | 1.48 | 1.69 | 1.87 | 2.13 | 2.93 | 2.84 | 2.57 | 2.48 | 2.47 | 2.95 | 3.00 | 2.97 | 2.85 | 2.75 | 2.18 | 2.42 | 2.38 | 2.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($313,992K
+ $—K
+ $306,166K)
÷ $286,437K
= 2.17
The quick ratio of Mercer International Inc. has shown some fluctuation over the past eight quarters.
In Q4 2023, the quick ratio stood at 2.25, indicating that the company had $2.25 in liquid assets to cover each dollar of current liabilities. This ratio decreased from the previous quarter's ratio of 2.40.
The quick ratio was relatively low in Q2 2023 at 1.54, suggesting a potential liquidity challenge as the company had $1.54 in liquid assets for every dollar of current liabilities. However, the ratio improved in Q3 2023 and Q1 2023 to 1.74 and 1.92, respectively.
The highest quick ratio was observed in Q2 2022 at 2.99, indicating a strong liquidity position with almost $3 in liquid assets for each dollar of current liabilities. The ratio remained above 2 in the following quarters of Q3 2022 and Q4 2022 before experiencing a decline in Q1 2023.
Overall, the trend in Mercer International Inc.'s quick ratio suggests some variability in liquidity levels, with the company demonstrating both strengths and challenges in its ability to meet short-term obligations with liquid assets. Further analysis may be needed to understand the factors driving these fluctuations.