Sealed Air Corporation (SEE)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 346,100 | 456,100 | 561,000 | 548,700 | 262,400 |
| Short-term investments | US$ in thousands | — | — | — | — | 13,200 |
| Receivables | US$ in thousands | 581,700 | 736,900 | 732,800 | 681,700 | 669,600 |
| Total current liabilities | US$ in thousands | 1,509,000 | 2,081,800 | 2,007,300 | 1,367,400 | 1,436,200 |
| Quick ratio | 0.61 | 0.57 | 0.64 | 0.90 | 0.66 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($346,100K
+ $—K
+ $581,700K)
÷ $1,509,000K
= 0.61
The quick ratio of Sealed Air Corp. has shown variability over the past five years. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations in the near future.
In 2023, the quick ratio improved to 0.79 from 0.60 in 2022, implying that the company's liquidity position strengthened slightly. However, the ratio is still below 1, suggesting that Sealed Air Corp. may face challenges in meeting its short-term obligations using its quick assets alone.
Comparing to previous years, the quick ratio was at its lowest in 2022 at 0.60 and highest in 2020 at 0.94. The significant drop in 2022 could signal potential liquidity concerns or a change in the company's asset composition that affected its ability to cover immediate liabilities.
Overall, the trend in the quick ratio indicates that Sealed Air Corp. has experienced fluctuations in its liquidity position over the past five years, with the company periodically having challenges in meeting its short-term obligations with its quick assets. Management should continue to monitor and potentially adjust its strategies to strengthen liquidity in order to better navigate short-term financial challenges.
Peer comparison
Dec 31, 2023