Ryder System Inc (R)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 204,000 | 267,000 | 234,000 | 151,294 | 73,584 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,714,000 | 1,610,000 | 1,465,000 | 1,182,350 | 1,228,490 |
| Total current liabilities | US$ in thousands | 3,649,000 | 3,316,000 | 3,201,000 | 2,053,150 | 2,625,350 |
| Quick ratio | 0.53 | 0.57 | 0.53 | 0.65 | 0.50 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($204,000K
+ $—K
+ $1,714,000K)
÷ $3,649,000K
= 0.53
The quick ratio of Ryder System, Inc. has fluctuated over the past five years, ranging from 0.56 to 0.75. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 may indicate a risk of liquidity problems in the short term, as it suggests that the company may not be able to cover its current liabilities with its liquid assets alone.
Ryder System, Inc.'s quick ratio has been below 1 for all the years analyzed, indicating a potential liquidity risk. The decreasing trend from 0.75 in 2021 to 0.62 in 2023 may be a cause for concern, as it suggests a decreasing ability to cover short-term obligations with liquid assets.
It is important for stakeholders to monitor this trend closely to ensure that Ryder System, Inc. maintains a sufficient level of liquidity to meet its short-term obligations and operational needs. Additional analysis of the company's cash flow and working capital management may provide further insights into its liquidity position.
Peer comparison
Dec 31, 2023