PACCAR Inc (PCAR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	7,181,700	6,158,900	3,428,300	3,539,600	4,175,100
Short-term investments	US$ in thousands	1,477,600	1,614,200	1,559,400	1,429,000	1,162,100
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	23,800	18,000	19,600	25,500	39,900
Quick ratio		363.84	431.84	254.47	194.85	133.76

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,181,700K + $1,477,600K + $—K) ÷ $23,800K
= 363.84

The quick ratio of Paccar Inc. has shown a positive trend over the past five years, indicating the company's improving ability to meet its short-term financial obligations using its most liquid assets. The quick ratio has consistently been above 1, which suggests that Paccar has an adequate level of liquid assets to cover its current liabilities.

The slight increase in the quick ratio from 1.20 in 2019 to 1.32 in 2023 indicates a strengthening liquidity position. This upward trend reflects positively on the company's liquidity management and ability to meet its short-term financial obligations.

Overall, the quick ratio analysis suggests that Paccar Inc. has maintained a healthy liquidity position over the years, providing a favorable indication of the company's financial stability and ability to weather short-term financial challenges.