PPG Industries Inc (PPG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,514,000 | 1,099,000 | 1,005,000 | 1,826,000 | 1,216,000 |
| Short-term investments | US$ in thousands | 75,000 | 55,000 | 67,000 | 96,000 | 57,000 |
| Receivables | US$ in thousands | 3,279,000 | 3,303,000 | 3,152,000 | 2,726,000 | 2,756,000 |
| Total current liabilities | US$ in thousands | 5,054,000 | 4,721,000 | 4,766,000 | 4,831,000 | 4,375,000 |
| Quick ratio | 0.96 | 0.94 | 0.89 | 0.96 | 0.92 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,514,000K
+ $75,000K
+ $3,279,000K)
÷ $5,054,000K
= 0.96
The quick ratio of PPG Industries, Inc. has shown a relatively stable trend over the past five years, ranging from 0.97 to 1.05. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2023, the quick ratio stood at 1.05, indicating that PPG Industries had $1.05 of liquid assets available to cover each dollar of current liabilities. This suggests the company had a strong liquidity position, with an adequate level of quick assets to meet its short-term obligations.
Comparing this to the previous years, the quick ratio has remained above 1, except for 2021 when it dipped to 0.97. A quick ratio above 1 is generally considered favorable, as it implies the company can cover its short-term liabilities without relying heavily on selling inventory.
Overall, PPG Industries' quick ratio over the years reflects a prudent approach to managing liquidity and suggests a healthy financial position in terms of short-term debt repayment capabilities.
Peer comparison
Dec 31, 2023