Quanta Services Inc (PWR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,290,250 | 428,505 | 229,097 | 184,620 | 164,798 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,213,120 | 3,406,190 | 3,164,960 | 2,138,560 | 2,263,050 |
| Cash ratio | 0.25 | 0.13 | 0.07 | 0.09 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,290,250K
+ $—K)
÷ $5,213,120K
= 0.25
The cash ratio of Quanta Services, Inc. has shown a generally increasing trend over the past five years, indicating a strengthening liquidity position. The company's cash ratio was 0.45 at the end of 2019, which rose to 0.59 by the end of 2023.
A cash ratio above 1.0 typically suggests that a company holds more cash and cash equivalents than its current liabilities, reflecting a strong ability to cover short-term obligations without relying on external sources of funding. In Quanta Services, Inc.'s case, the cash ratio has consistently been below 1.0, indicating that the company may have relied on other sources of liquidity or short-term assets to meet its obligations.
While the upward trend in the cash ratio is generally positive, investors and analysts may still want to assess the company's overall liquidity position in conjunction with other financial metrics to gain a more comprehensive understanding of its ability to meet short-term financial obligations.
Peer comparison
Dec 31, 2023