Enpro Industries (NPO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 369,800 | 334,400 | 338,100 | 229,500 | 121,200 |
| Short-term investments | US$ in thousands | — | 0 | — | — | — |
| Receivables | US$ in thousands | -2,000 | -2,900 | 5,600 | 45,500 | 25,000 |
| Total current liabilities | US$ in thousands | 196,400 | 211,500 | 386,300 | 202,000 | 313,600 |
| Quick ratio | 1.87 | 1.57 | 0.89 | 1.36 | 0.47 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($369,800K
+ $—K
+ $-2,000K)
÷ $196,400K
= 1.87
The quick ratio of Enpro Inc has shown fluctuating trends over the past five years. In 2023, the quick ratio improved to 2.59 compared to 2.44 in 2022, indicating a stronger ability to cover its short-term obligations with its most liquid assets. This could imply that Enpro Inc has a healthier liquidity position and may be better positioned to meet its upcoming liabilities.
The quick ratio was at its lowest in 2021 at 1.46 but rebounded in 2022 and 2023. The significant increase from 2021 to 2022 suggests that Enpro Inc may have taken steps to improve its liquidity management during that period. However, the ratio in 2023 is significantly higher than in previous years (except for 2020), signaling a potentially conservative approach to managing short-term liquidity.
Overall, Enpro Inc's quick ratio has generally been above 1, indicating the company's ability to meet its short-term financial obligations using its quick assets. An increasing trend in the quick ratio over the years reflects stronger liquidity and financial stability for the company.