Minerals Technologies Inc (MTX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 317,200 | 247,200 | 299,500 | 367,700 | 241,600 |
| Short-term investments | US$ in thousands | 4,300 | 5,600 | 4,900 | 4,100 | 1,600 |
| Receivables | US$ in thousands | 399,100 | 404,000 | 367,800 | 369,000 | 376,200 |
| Total current liabilities | US$ in thousands | 457,300 | 502,600 | 419,800 | 295,800 | 398,500 |
| Quick ratio | 1.58 | 1.31 | 1.60 | 2.50 | 1.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($317,200K
+ $4,300K
+ $399,100K)
÷ $457,300K
= 1.58
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Minerals Technologies, Inc.'s quick ratio has fluctuated over the past five years, with values ranging from 1.44 to 2.66. In 2023, the quick ratio was 1.69, indicating that the company had $1.69 in liquid assets available to cover each dollar of current liabilities.
Compared to the previous year, the quick ratio increased from 1.44 to 1.69, suggesting an improved short-term liquidity position. However, when observing the trend over the five-year period, the quick ratio was highest in 2020 at 2.66, signaling a higher level of liquidity at that time.
Overall, Minerals Technologies, Inc. has maintained a relatively healthy quick ratio above 1, indicating a generally sound ability to cover its short-term obligations with liquid assets. The fluctuations in the quick ratio over the years may reflect changes in the company's operations, investments, or financing activities impacting its liquidity position. Further analysis would be needed to understand the underlying reasons for these fluctuations and evaluate the company's overall liquidity and financial health in more detail.
Peer comparison
Dec 31, 2023