MasTec Inc (MTZ)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 529,561 | 370,592 | 360,736 | 423,118 | 71,427 |
| Short-term investments | US$ in thousands | — | 200 | 7,900 | 17,000 | — |
| Receivables | US$ in thousands | 1,370,070 | 1,399,730 | 1,019,320 | 784,488 | 850,326 |
| Total current liabilities | US$ in thousands | 2,837,220 | 2,496,040 | 1,784,600 | 1,415,200 | 1,219,130 |
| Quick ratio | 0.67 | 0.71 | 0.78 | 0.87 | 0.76 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($529,561K
+ $—K
+ $1,370,070K)
÷ $2,837,220K
= 0.67
The quick ratio of MasTec Inc has shown a decreasing trend over the past five years, declining from 0.76 in 2019 to 0.67 in 2023. This indicates a potential weakening liquidity position as the company may have less ability to cover its short-term obligations with its most liquid assets.
The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets (such as cash, marketable securities, and accounts receivable) without relying on inventory. Generally, a quick ratio above 1.0 is considered healthy, as it suggests that the company has enough liquid assets to cover its short-term liabilities.
MasTec Inc's quick ratio below 1.0 in all the years indicates that the company may have some difficulty in meeting its short-term obligations using only its most liquid assets. A downward trend in the quick ratio may raise concerns about the company's ability to manage its short-term financial obligations effectively.
It is important for MasTec Inc to closely monitor its liquidity position and consider strategies to improve its quick ratio, such as managing its accounts receivable, reducing inventory levels, or increasing its cash reserves, to enhance its ability to meet short-term obligations and maintain financial stability.
Peer comparison
Dec 31, 2023