PHINIA Inc. (PHIN)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 365,000 | 367,000 | 213,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 1,017,000 | 1,175,000 | — |
| Total current liabilities | US$ in thousands | 1,148,000 | 1,321,000 | 947,000 |
| Quick ratio | 1.20 | 1.17 | 0.22 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($365,000K
+ $—K
+ $1,017,000K)
÷ $1,148,000K
= 1.20
The quick ratio of PHINIA Inc. has shown variations over the past three quarters. As of December 31, 2023, the quick ratio stood at 1.20, indicating that the company had $1.20 in liquid assets to cover each $1 of current liabilities. This suggests that the company had a relatively strong liquidity position at the end of the year.
In the previous quarter, as of September 30, 2023, the quick ratio decreased slightly to 1.17, although it remained above the ideal threshold of 1. This indicates that the company's ability to meet its short-term obligations with its liquid assets remained sound, albeit slightly lower than in the previous quarter.
However, a significant drop in the quick ratio was observed in the quarter ending June 30, 2023, where the quick ratio was reported at 0.22. This implies that the company had only $0.22 in liquid assets for every $1 of current liabilities, signaling potential liquidity challenges during that period.
Overall, the trend in the quick ratio of PHINIA Inc. reflects some fluctuations in the company's liquidity position throughout the year, with a notable improvement in the most recent quarter. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023