Quanta Services Inc (PWR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,676,900 | 5,536,070 | 4,732,580 | 3,588,390 | 3,830,990 |
| Total current liabilities | US$ in thousands | 5,213,120 | 3,406,190 | 3,164,960 | 2,138,560 | 2,263,050 |
| Current ratio | 1.47 | 1.63 | 1.50 | 1.68 | 1.69 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,676,900K ÷ $5,213,120K
= 1.47
The current ratio of Quanta Services, Inc. has shown a declining trend over the past five years. The ratio was 1.69 in 2019 and has gradually decreased to 1.47 in 2023.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests the company's ability to meet its short-term obligations. While the current ratio of Quanta Services, Inc. has been above 1 in all the years presented, the declining trend may indicate a potential concern regarding the company's liquidity position.
A current ratio of 1.47 in 2023 means that the company had $1.47 in current assets for every $1 of current liabilities. While this ratio is still above 1, suggesting the company's ability to meet its short-term obligations, the decreasing trend may require further investigation into the company's liquidity management and the efficiency of its current asset management.
Overall, the declining current ratio of Quanta Services, Inc. over the past five years indicates a potential weakening in the company's short-term liquidity position, and stakeholders may need to monitor this trend closely to ensure the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023