EchoStar Corporation (SATS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,821,380 | 2,497,540 | 535,894 | 896,005 | 1,519,430 |
| Short-term investments | US$ in thousands | 623,044 | 1,092,700 | 1,153,440 | 1,662,710 | 976,189 |
| Receivables | US$ in thousands | 1,122,140 | 239,971 | 199,012 | 183,989 | 196,629 |
| Total current liabilities | US$ in thousands | 8,018,590 | 6,442,610 | 460,123 | 1,425,170 | 496,019 |
| Quick ratio | 0.44 | 0.59 | 4.10 | 1.92 | 5.43 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,821,380K
+ $623,044K
+ $1,122,140K)
÷ $8,018,590K
= 0.44
The quick ratio of EchoStar Corporation has exhibited some fluctuations over the past five years.
In 2023, the quick ratio stands at 0.44, indicating that the company may have difficulties meeting its short-term obligations with its most liquid assets. This decrease from the previous years suggests a potential weakening of the company's ability to cover its current liabilities with its quick assets.
Comparatively, in 2021 and 2019, the quick ratio was significantly higher at 4.10 and 5.43 respectively. These high ratios imply that EchoStar had a strong ability to cover its short-term liabilities with its quick assets during those years.
Overall, the declining trend in the quick ratio from 2019 to 2023 may raise concerns about EchoStar's liquidity position and its ability to handle immediate financial obligations. Further analysis of the company's current assets and liabilities is warranted to understand the underlying reasons for the changes in the quick ratio over the years.
Peer comparison
Dec 31, 2023