Somnigroup International Inc. (SGI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 74,900 | 69,400 | 300,700 | 65,000 | 64,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 456,200 | 422,600 | 419,500 | 383,700 | 372,000 |
| Total current liabilities | US$ in thousands | 908,200 | 981,200 | 1,053,400 | 974,800 | 773,300 |
| Quick ratio | 0.58 | 0.50 | 0.68 | 0.46 | 0.56 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($74,900K
+ $—K
+ $456,200K)
÷ $908,200K
= 0.58
The quick ratio of Somnigroup International Inc. has fluctuated over the past five years, with a low of 0.46 in December 31, 2020, and a high of 0.68 in December 31, 2021.
A quick ratio below 1 indicates that the company may have difficulties in meeting its short-term obligations with its most liquid assets. Somnigroup's quick ratio has generally been below 1, suggesting a potential liquidity risk in the short term.
Although there was an improvement in the quick ratio in December 31, 2021, reaching 0.68, the ratio decreased to 0.50 in December 31, 2022, and then increased slightly to 0.58 in December 31, 2023.
It is important for investors and analysts to monitor this trend closely, as a persistent low quick ratio may signal potential liquidity concerns for Somnigroup International Inc.
Peer comparison
Dec 31, 2023