Materion Corporation (MTRN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 13,294 | 13,101 | 14,462 | 25,878 | 125,007 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 192,747 | 215,211 | 223,553 | 166,447 | 154,751 |
| Total current liabilities | US$ in thousands | 254,995 | 238,964 | 204,509 | 126,884 | 122,440 |
| Quick ratio | 0.81 | 0.96 | 1.16 | 1.52 | 2.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($13,294K
+ $—K
+ $192,747K)
÷ $254,995K
= 0.81
The quick ratio of Materion Corp has experienced a declining trend over the past five years, decreasing from 2.46 in 2019 to 1.05 in 2023. This indicates a reduction in the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty meeting its current liabilities with its quick assets alone.
The decreasing trend in the quick ratio could raise concerns about Materion Corp's liquidity position and ability to cover its short-term financial obligations. Investors and creditors may interpret this trend as a potential sign of financial strain or inefficiency in managing current assets and liabilities.
It is important for Materion Corp to closely monitor and improve its quick ratio to ensure it maintains a strong liquidity position and can meet its short-term obligations effectively. Further analysis of the composition of quick assets and liabilities would provide more insights into the company's liquidity management.