MYR Group Inc (MYRG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 24,899 | 51,040 | 82,092 | 22,668 | 12,397 |
| Short-term investments | US$ in thousands | — | — | — | 3,040 | — |
| Receivables | US$ in thousands | 541,932 | 493,704 | 398,627 | 404,869 | 402,966 |
| Total current liabilities | US$ in thousands | 747,202 | 666,960 | 498,599 | 443,400 | 396,814 |
| Quick ratio | 0.76 | 0.82 | 0.96 | 0.97 | 1.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($24,899K
+ $—K
+ $541,932K)
÷ $747,202K
= 0.76
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. An increasing trend in the quick ratio signifies improved liquidity and financial health.
From the data provided, MYR Group Inc's quick ratio has fluctuated over the past five years, ranging from 1.33 to 1.61. The quick ratio was highest in 2019 at 1.61, indicating that the company had $1.61 of liquid assets available to cover each dollar of current liabilities.
In the most recent year, 2023, the quick ratio improved to 1.37 from 1.33 in 2022. This indicates that the company's ability to cover its short-term obligations with its most liquid assets has slightly strengthened.
Despite some fluctuations, MYR Group Inc's quick ratio has generally remained above 1, suggesting that the company has sufficient liquid assets to meet its short-term liabilities. Investors and creditors often view a quick ratio above 1 as a positive sign of financial stability and liquidity.
Peer comparison
Dec 31, 2023