Mettler-Toledo International Inc (MTD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 69,807 | 95,966 | 98,564 | 94,254 | 207,785 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 663,893 | 709,321 | 647,335 | 593,809 | 566,256 |
| Total current liabilities | US$ in thousands | 1,181,080 | 1,147,730 | 1,146,540 | 840,327 | 754,512 |
| Quick ratio | 0.62 | 0.70 | 0.65 | 0.82 | 1.03 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($69,807K
+ $—K
+ $663,893K)
÷ $1,181,080K
= 0.62
The quick ratio of Mettler-Toledo International, Inc. has shown a decreasing trend over the past five years. In 2019, the quick ratio was the highest at 1.11, indicating a strong ability to meet short-term obligations with quick assets. However, this ratio has been decreasing annually since then, reaching 0.71 in 2023.
A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term liabilities with its most liquid assets. Therefore, the downward trend in Mettler-Toledo's quick ratio may raise concerns about its liquidity and ability to cover immediate financial obligations.
It would be advisable for stakeholders to closely monitor the company's liquidity position and assess its ability to manage short-term financial pressures in the upcoming periods based on these trends in the quick ratio.
Peer comparison
Dec 31, 2023