MSA Safety (MSA)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	146,442	162,902	140,895	160,672	152,195
Short-term investments	US$ in thousands	—	9,905	48,974	74,982	49,892
Receivables	US$ in thousands	307,590	336,028	284,022	278,468	268,154
Total current liabilities	US$ in thousands	332,818	345,865	330,606	310,545	277,509
Quick ratio		1.36	1.47	1.43	1.66	1.69

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($146,442K + $—K + $307,590K) ÷ $332,818K
= 1.36

The quick ratio of MSA Safety Inc has exhibited a gradual decline over the past five years, decreasing from 1.83 in 2019 to 1.48 in 2023. This trend indicates that the company's ability to meet its short-term liabilities using its most liquid assets has slightly weakened.

Although the current quick ratio of 1.48 in 2023 is lower compared to the previous years, it still indicates that MSA Safety Inc maintains a relatively healthy liquidity position, with $1.48 in liquid assets available to cover each $1 of current liabilities. This suggests that the company has sufficient short-term assets to meet its immediate obligations without having to rely heavily on selling inventory or raising additional funds.

However, it is essential for MSA Safety Inc to closely monitor its liquidity position to ensure that it remains stable and able to withstand any unforeseen financial challenges in the future. Further analysis and consideration of other financial metrics are recommended to gain a comprehensive understanding of the company's overall financial health and performance.