Quanta Services Inc (PWR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,290,250 | 428,505 | 229,097 | 184,620 | 164,798 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 4,410,830 | 3,674,520 | 3,400,320 | 2,716,080 | 2,747,910 |
| Total current liabilities | US$ in thousands | 5,213,120 | 3,406,190 | 3,164,960 | 2,138,560 | 2,263,050 |
| Quick ratio | 1.09 | 1.20 | 1.15 | 1.36 | 1.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,290,250K
+ $—K
+ $4,410,830K)
÷ $5,213,120K
= 1.09
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. A higher quick ratio indicates a stronger ability to cover immediate liabilities.
Looking at Quanta Services, Inc.'s quick ratio over the last five years, we observe a fluctuating trend. The ratio has ranged between 1.44 and 1.67 during this period. In 2023, the quick ratio stands at 1.44, a slight decrease from the previous year's 1.59.
Although the current quick ratio of 1.44 is slightly lower than the previous year, the company still maintains a healthy level of liquidity to meet its short-term obligations. However, it is essential to continue monitoring liquidity levels to ensure that the company can easily cover its immediate liabilities without relying heavily on selling inventory or other less liquid assets.
Peer comparison
Dec 31, 2023