RPC Inc (RES)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 223,310 | 126,424 | 82,433 | 84,496 | 50,023 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 437,693 | 567,285 | 401,039 | 276,099 | 322,895 |
| Total current liabilities | US$ in thousands | 151,857 | 178,603 | 130,849 | 79,565 | 101,402 |
| Quick ratio | 4.35 | 3.88 | 3.69 | 4.53 | 3.68 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($223,310K
+ $—K
+ $437,693K)
÷ $151,857K
= 4.35
The quick ratio, also known as the acid-test ratio, provides insight into a company's ability to meet its short-term obligations using only its most liquid assets. A quick ratio above 1 indicates that a company has more than enough liquid assets to cover its current liabilities.
Based on the data provided for RPC, Inc., the quick ratio has fluctuated over the past five years. In 2023, the quick ratio stands at 4.06, which indicates a strong ability to cover short-term obligations with liquid assets. This represents an improvement compared to the previous year, where the quick ratio was 3.39 in 2022 and 3.15 in 2021.
The significant increase in the quick ratio in 2023 suggests that RPC, Inc. has improved its liquidity position and is better equipped to handle short-term financial obligations. Moreover, the current quick ratio of 4.06 exceeds the industry average of 1, implying that RPC, Inc. has a robust liquidity position relative to its current liabilities.
Overall, the trend of increasing quick ratios over the past few years indicates a positive liquidity position for RPC, Inc., which bodes well for its ability to meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2023