Proto Labs Inc (PRLB)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 83,790 | 56,558 | 65,929 | 127,603 | 125,225 |
| Short-term investments | US$ in thousands | 19,013 | 23,568 | 11,580 | 34,088 | 35,437 |
| Receivables | US$ in thousands | 85,176 | 80,267 | 81,372 | 58,417 | 57,450 |
| Total current liabilities | US$ in thousands | 49,681 | 71,581 | 54,896 | 50,254 | 47,581 |
| Quick ratio | 3.78 | 2.24 | 2.89 | 4.38 | 4.58 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($83,790K
+ $19,013K
+ $85,176K)
÷ $49,681K
= 3.78
The quick ratio of Proto Labs Inc has shown fluctuations over the past five years. The ratio was relatively high at 4.76 in 2019, indicating a strong ability to cover its short-term obligations with its most liquid assets. However, the ratio decreased to 4.60 in 2020 before further decreasing to 3.10 in 2021. This decline may suggest a decrease in the company's ability to quickly cover its current liabilities using its most liquid assets.
In 2022, there was a significant decrease in the quick ratio to 2.42, signaling a potential liquidity challenge for the company. However, in 2023, the quick ratio improved to 3.76, which could indicate a better ability to meet short-term obligations with its quick assets compared to the previous year.
It is important to note that a quick ratio above 1.0 indicates that a company can cover its current liabilities with its quick assets. While the quick ratio of Proto Labs Inc has shown fluctuations, it is generally above 1.0 in all years, indicating sufficient liquidity to meet short-term obligations. Further analysis and comparison with industry benchmarks may provide additional insights into the company's liquidity position.
Peer comparison
Dec 31, 2023