Pentair PLC (PNR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 118,700 | 170,300 | 108,900 | 94,500 | 82,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | -9,100 | -11,200 | -10,800 | -9,100 | -8,400 |
| Total current liabilities | US$ in thousands | 895,100 | 949,600 | 1,063,100 | 1,051,700 | 772,500 |
| Quick ratio | 0.12 | 0.17 | 0.09 | 0.08 | 0.10 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($118,700K
+ $—K
+ $-9,100K)
÷ $895,100K
= 0.12
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. The quick ratio is calculated by using the formula: (Cash and Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities.
Based on the data provided for Pentair PLC, the quick ratio has fluctuated over the years. In December 31, 2020, the quick ratio was 0.10, indicating that the company had $0.10 of liquid assets available to cover each dollar of current liabilities. The quick ratio decreased to 0.08 by December 31, 2021, suggesting a decline in the company's ability to meet its short-term obligations.
However, the quick ratio improved to 0.09 by December 31, 2022, but still remained relatively low. The most significant improvement occurred by the end of December 31, 2023 when the quick ratio surged to 0.17, indicating a stronger ability to cover current liabilities with liquid assets. Despite this improvement, the quick ratio decreased slightly to 0.12 by December 31, 2024.
Overall, the quick ratio of Pentair PLC has shown variability over the years, with fluctuations that may indicate changes in the company's liquidity position. Investors and analysts closely monitor the quick ratio as it provides insights into a company's short-term financial health and ability to meet its immediate obligations.
Peer comparison
Dec 31, 2024