Mettler-Toledo International Inc (MTD)

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	69,807	69,675	83,574	89,085	95,966	122,136	109,449	116,949	98,564	183,672	142,252	106,700	94,254	153,686	127,277	323,585	207,785	120,534	124,439	126,480
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	14	23	15	—	—	—	—
Receivables	US$ in thousands	663,893	634,967	648,002	640,050	709,321	611,399	626,593	617,880	647,335	603,364	600,191	574,418	593,809	521,777	490,429	518,556	566,256	503,247	498,723	489,281
Total current liabilities	US$ in thousands	1,181,080	1,070,420	1,008,000	1,004,250	1,147,730	1,164,940	1,118,580	1,087,410	1,146,540	1,001,560	938,369	841,809	840,327	764,081	702,829	679,838	754,512	719,255	707,251	707,964
Quick ratio		0.62	0.66	0.73	0.73	0.70	0.63	0.66	0.68	0.65	0.79	0.79	0.81	0.82	0.88	0.88	1.24	1.03	0.87	0.88	0.87

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 fluctuations over the past eight quarters. The ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has ranged between 0.71 and 0.86 during this period.

In Q1 2023, the quick ratio stood at 0.86, indicating that the company had $0.86 in liquid assets available to cover each $1 of current liabilities. This suggests a relatively strong liquidity position compared to the previous quarters. However, this ratio decreased in the subsequent quarters, reaching its lowest point of 0.71 in Q4 2023.

The downward trend in the quick ratio from Q1 2023 to Q4 2023 may raise concerns about the company's ability to meet its short-term financial obligations using its readily available assets. It is essential to monitor this ratio closely in future periods to assess whether the trend continues or if there are improvements in the company's liquidity position.