RPC Inc (RES)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	325,975	223,310	126,424	82,433	84,496
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	181,913	151,857	178,603	130,849	79,565
Quick ratio		1.79	1.47	0.71	0.63	1.06

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($325,975K + $—K + $—K) ÷ $181,913K
= 1.79

Based on the data provided, the quick ratio of RPC Inc has fluctuated over the past five years.

As of December 31, 2020, the quick ratio was 1.06, indicating that the company had just enough liquid assets to cover its current liabilities. However, by December 31, 2021, the quick ratio decreased to 0.63, suggesting a potential liquidity issue as the company may struggle to meet its short-term obligations using its quick assets alone.

In the subsequent years, the quick ratio improved, reaching 0.71 as of December 31, 2022, showing a slight recovery in liquidity. By December 31, 2023, the quick ratio significantly improved to 1.47, indicating that the company had more than enough quick assets to cover its current liabilities, which reflects a healthier liquidity position.

As of the most recent data point on December 31, 2024, the quick ratio further increased to 1.79, showing a strengthening liquidity position compared to the prior years. A quick ratio above 1.0 typically indicates that a company has an adequate level of liquid assets to cover its short-term liabilities without having to rely on selling inventory or obtaining additional financing.

In conclusion, the trend in RPC Inc's quick ratio over the five-year period demonstrates fluctuations in liquidity, with improvements in recent years leading to a stronger ability to meet short-term obligations using its readily available assets.