Republic Services Inc (RSG)

Quick ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash US$ in thousands 140,000 157,500 181,600 132,200 143,400 81,400 119,400 39,000 29,000 40,100 34,000 23,200 38,200 406,400 269,700 281,600 47,100 55,600 72,500 68,000
Short-term investments US$ in thousands 163,600 153,300 149,600 132,700 127,600 121,700 121,500 117,200 139,000 155,600 151,000 134,600 149,100 145,200 142,600 25,000 0 121,300 119,200 115,100
Receivables US$ in thousands 1,831,600 1,883,600 1,794,500 1,735,900 1,737,000 1,759,900 1,683,400 1,352,800 1,303,600 1,303,700 1,196,600 1,142,300 1,123,500 1,136,200 1,088,800 1,156,400 1,214,000 1,201,900 1,168,500 1,099,400
Total current liabilities US$ in thousands 4,228,300 4,068,800 2,987,900 3,029,300 3,390,700 3,163,800 2,934,600 2,258,100 2,415,600 2,333,400 2,314,800 2,148,800 2,282,000 2,190,800 2,066,100 1,980,600 3,064,600 2,997,400 3,571,000 3,467,900
Quick ratio 0.50 0.54 0.71 0.66 0.59 0.62 0.66 0.67 0.61 0.64 0.60 0.61 0.57 0.77 0.73 0.74 0.41 0.46 0.38 0.37

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($140,000K + $163,600K + $1,831,600K) ÷ $4,228,300K
= 0.50

Based on the quick ratio data provided for Republic Services, Inc. over the past eight quarters, we observe fluctuations in the company's ability to meet its short-term obligations with its most liquid assets.

The quick ratio, which measures the company's immediate liquidity by comparing its quick assets (such as cash, marketable securities, and accounts receivable) to its current liabilities, ranged from 0.54 to 0.72 during the period under review.

The quick ratio has generally been below 1, indicating that Republic Services may have faced challenges in meeting its short-term liabilities with its readily available assets. A lower quick ratio suggests a higher dependency on inventory or slower-moving assets to meet short-term obligations, which may expose the company to liquidity risks.

While the quick ratio increased to 0.72 in Q2 2023 from its recent low of 0.54 in Q4 2023, it remained relatively volatile throughout the quarters. The peak quick ratio of 0.72 in Q2 2023 may suggest an improvement in the company's liquidity position during that period.

It is recommended that Republic Services continues to monitor and manage its liquidity position effectively to ensure it can meet its short-term obligations without relying too heavily on inventory or slow-moving assets. Strengthening the quick ratio above 1 could provide a more comfortable buffer for the company's short-term liquidity needs and enhance its financial stability.


Peer comparison

Dec 31, 2023

Company name
Symbol
Quick ratio
Republic Services Inc
RSG
0.50
Waste Management Inc
WM
0.79