MSA Safety (MSA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 164,560 | 146,442 | 162,902 | 140,895 | 160,672 |
| Short-term investments | US$ in thousands | — | 0 | 9,905 | 48,974 | 74,982 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 288,093 | 332,818 | 345,865 | 330,606 | 310,545 |
| Quick ratio | 0.57 | 0.44 | 0.50 | 0.57 | 0.76 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($164,560K
+ $—K
+ $—K)
÷ $288,093K
= 0.57
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may struggle to meet its short-term liabilities.
Analyzing the quick ratio of MSA Safety from 2020 to 2024, we observe a declining trend over the period. In December 2020, the quick ratio stood at 0.76, indicating that MSA Safety had sufficient liquid assets to cover its short-term liabilities. However, this ratio decreased to 0.57 in December 2021, suggesting a decrease in the company's ability to meet its short-term obligations promptly.
The trend continued to decline further to 0.50 in December 2022, 0.44 in December 2023, before rebounding slightly to 0.57 in December 2024. These decreasing quick ratios may raise concerns about MSA Safety's liquidity position and ability to manage its short-term financial commitments efficiently.
Overall, the declining trend in MSA Safety's quick ratio from 2020 to 2024 signals a potential deterioration in the company's short-term liquidity position, which may require further investigation and monitoring to ensure financial stability and operational continuity.
Peer comparison
Dec 31, 2024