Rollins Inc (ROL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 89,630 | 103,825 | 95,346 | 105,301 | 98,477 |
| Short-term investments | US$ in thousands | — | 1,000 | 500 | 12,600 | — |
| Receivables | US$ in thousands | 236,382 | 215,239 | 189,377 | 165,731 | 20,085 |
| Total current liabilities | US$ in thousands | 645,162 | 576,689 | 493,784 | 491,162 | 472,511 |
| Quick ratio | 0.51 | 0.56 | 0.58 | 0.58 | 0.25 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($89,630K
+ $—K
+ $236,382K)
÷ $645,162K
= 0.51
The quick ratio of Rollins Inc shows mixed performance over the past five years. It increased from 0.25 in December 31, 2020, to 0.58 in December 31, 2021, and remained stable at 0.58 in December 31, 2022. However, there was a slight decrease to 0.56 in December 31, 2023, and further declined to 0.51 in December 31, 2024.
The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities. In Rollins Inc's case, the ratio has been consistently below 1 in the last five years, suggesting a relatively weaker liquidity position.
While the trend shows some improvement in liquidity from 2020 to 2022, the subsequent decline in the quick ratio in 2023 and 2024 could be a cause for concern. Investors and stakeholders may need to closely monitor Rollins Inc's ability to manage its short-term obligations and ensure sufficient liquidity to support its operations. Further analysis of the company's cash flow and working capital management would provide additional insights into its financial health.
Peer comparison
Dec 31, 2024