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