Myers Industries Inc (MYE)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 30,290 | 23,139 | 17,655 | 28,301 | 75,527 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 113,907 | 133,716 | 100,691 | 83,701 | 62,279 |
| Total current liabilities | US$ in thousands | 165,107 | 137,762 | 132,500 | 142,247 | 82,625 |
| Quick ratio | 0.87 | 1.14 | 0.89 | 0.79 | 1.67 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($30,290K
+ $—K
+ $113,907K)
÷ $165,107K
= 0.87
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. It is calculated by dividing the sum of cash, marketable securities, and accounts receivable by current liabilities.
Analyzing Myers Industries Inc.'s quick ratio over the past five years reveals fluctuations in its short-term liquidity position. In 2023, the quick ratio stands at 1.00, indicating that the company has just enough liquid assets to cover its current liabilities. This is a decrease from 2022 when the quick ratio was 1.19, suggesting a slight deterioration in the company's ability to meet short-term obligations quickly.
Comparing the current quick ratio to 2021 (0.95) and 2020 (0.83), we observe a trend of improvement in liquidity since those years. In 2021 and 2020, the quick ratio was below 1, signaling that the company had insufficient liquid assets to cover its short-term liabilities comfortably.
The quick ratio spiked in 2019 to 1.70, indicating a significant improvement in liquidity compared to the following years. The substantial increase in 2019 could be attributed to a higher proportion of liquid assets relative to short-term liabilities during that period.
Overall, while the current quick ratio suggests that Myers Industries Inc. may be able to meet its short-term obligations, the fluctuating trend in recent years indicates the need for careful monitoring of the company's liquidity position to ensure it remains stable and sufficient to cover immediate financial commitments.
Peer comparison
Dec 31, 2023