Gibraltar Industries Inc (ROCK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 99,426 | 17,608 | 12,849 | 32,054 | 191,363 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 224,550 | 217,156 | 236,444 | 197,990 | 147,515 |
| Total current liabilities | US$ in thousands | 225,578 | 215,320 | 286,990 | 302,240 | 229,197 |
| Quick ratio | 1.44 | 1.09 | 0.87 | 0.76 | 1.48 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($99,426K
+ $—K
+ $224,550K)
÷ $225,578K
= 1.44
The quick ratio of Gibraltar Industries Inc. has shown some fluctuations over the past five years. In 2019, the quick ratio was at its highest at 1.56, indicating a strong ability to meet its short-term obligations using its most liquid assets. However, this ratio decreased in the following years, reaching a low of 0.83 by the end of 2020. This drop may suggest potential liquidity concerns or inefficient management of current assets in relation to short-term liabilities.
Subsequently, there was a notable improvement in the quick ratio in 2021 and 2022, rising to 0.94 and 1.18, respectively. These increases indicate enhanced liquidity and a better ability to cover immediate liabilities with current assets. Notably, by the end of 2023, the quick ratio further improved to 1.51, surpassing the 2019 level. This significant uptick suggests a stronger position in terms of short-term liquidity and the ability to comfortably meet short-term obligations using liquid assets.
Overall, the increasing trend in Gibraltar Industries Inc.'s quick ratio from 2020 to 2023 reflects an improved liquidity position and a more robust ability to meet short-term obligations with readily available assets. It is essential for the company to sustain this positive trend to ensure financial stability and effectively manage its short-term liquidity needs.
Peer comparison
Dec 31, 2023