Packaging Corp of America (PKG)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 685,000 | 676,600 | 613,600 | 692,400 | 648,000 | 573,200 | 477,100 | 367,700 | 320,000 | 648,700 | 667,300 | 628,600 | 618,700 | 1,702,900 | 972,200 | 983,400 | 974,600 | 949,100 | 853,300 | 764,000 |
| Short-term investments | US$ in thousands | 102,000 | 95,000 | 490,800 | 492,300 | 493,500 | 104,000 | 101,900 | 95,600 | 85,200 | 77,700 | 82,300 | 81,300 | 86,100 | 88,300 | 101,700 | 102,500 | 105,600 | 101,200 | 86,900 | 92,300 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,001,600 | 1,100,500 | 1,431,500 | 1,400,300 | 1,265,700 | 1,278,900 | 797,700 | 828,900 | 875,500 | 963,400 | 972,900 | 967,900 | 884,800 | 1,644,400 | 816,800 | 805,800 | 782,600 | 775,400 | 683,600 | 744,600 |
| Quick ratio | 0.79 | 0.70 | 0.77 | 0.85 | 0.90 | 0.53 | 0.73 | 0.56 | 0.46 | 0.75 | 0.77 | 0.73 | 0.80 | 1.09 | 1.31 | 1.35 | 1.38 | 1.35 | 1.38 | 1.15 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($685,000K
+ $102,000K
+ $—K)
÷ $1,001,600K
= 0.79
Packaging Corp of America's quick ratio, a measure of its short-term liquidity and ability to cover immediate liabilities with its liquid assets, has shown fluctuations over the reported periods. The quick ratio decreased from 1.15 on March 31, 2020, to 0.79 on December 31, 2024.
During the early periods, the quick ratio remained relatively stable, hovering around or above 1. This suggests that the company had an adequate level of liquid assets to cover its short-term liabilities without relying heavily on inventory.
However, there was a notable decline in the quick ratio starting from September 30, 2021, reaching a low point of 0.46 on December 31, 2022. This significant drop indicates potential liquidity challenges or difficulties in meeting short-term obligations using only readily available assets.
While the quick ratio showed some improvement in the later periods, it continued to fluctuate, indicating ongoing variability in the company's ability to quickly cover its short-term debts. Investors and creditors may want to further investigate the reasons behind these fluctuations to assess Packaging Corp of America's liquidity position accurately.
Peer comparison
Dec 31, 2024