Nexstar Broadcasting Group Inc (NXST)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 144,000 | 147,000 | 204,100 | 190,868 | 152,701 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,333,780 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 783,000 | 961,000 | 893,200 | 787,294 | 730,888 |
| Quick ratio | 0.18 | 0.15 | 0.23 | 0.24 | 2.03 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($144,000K
+ $—K
+ $—K)
÷ $783,000K
= 0.18
The quick ratio of Nexstar Broadcasting Group Inc has exhibited a declining trend over the years. As of December 31, 2020, the quick ratio was at a healthy level of 2.03, indicating a strong ability to meet its short-term obligations using its most liquid assets. However, this ratio saw a significant decrease to 0.24 as of December 31, 2021, suggesting a potential liquidity strain.
The trend continued to decline in the subsequent years, with the quick ratio falling to 0.23 as of December 31, 2022, 0.15 as of December 31, 2023, and slightly improving to 0.18 as of December 31, 2024. These decreasing values indicate a decreasing ability to cover current liabilities with liquid assets, raising concerns about the company's short-term financial health and ability to manage its obligations efficiently.
It is crucial for Nexstar Broadcasting Group Inc to closely monitor its liquidity position, as a low quick ratio may indicate potential difficulties in meeting its short-term financial obligations. Management should consider implementing strategies to improve liquidity and ensure the company's financial stability in the future.
Peer comparison
Dec 31, 2024