Resideo Technologies Inc (REZI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 692,000 | 636,000 | 326,000 | 779,000 | 517,000 |
| Short-term investments | US$ in thousands | — | 20,000 | 23,000 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,790,000 | 1,525,000 | 1,546,000 | 1,494,000 | 1,538,000 |
| Quick ratio | 0.39 | 0.43 | 0.23 | 0.52 | 0.34 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($692,000K
+ $—K
+ $—K)
÷ $1,790,000K
= 0.39
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Resideo Technologies Inc, the quick ratio has fluctuated over the past five years, indicating varying levels of liquidity and ability to cover immediate liabilities.
As of December 31, 2020, the quick ratio was 0.34, suggesting that the company had only $0.34 in liquid assets for every $1 of current liabilities, indicating potential liquidity concerns. However, there was an improvement in the quick ratio by December 31, 2021, reaching 0.52, which indicated a better ability to cover short-term obligations.
Subsequently, by December 31, 2022, the quick ratio dropped to 0.23, signaling a decrease in liquidity compared to the previous year and a potential difficulty in meeting short-term obligations. However, the quick ratio improved again by December 31, 2023, reaching 0.43, showing a better ability to cover immediate liabilities.
As of the most recent data on December 31, 2024, the quick ratio was 0.39. Although it was slightly lower than the ratio in 2023, it still indicated an improved liquidity position compared to 2022. Overall, the trend in Resideo Technologies Inc's quick ratio shows some volatility over the years, with periods of strengths and weaknesses in its ability to fulfill short-term financial obligations.