Silgan Holdings Inc (SLGN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 822,854 | 642,923 | 585,600 | 631,400 | 409,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,247,530 | 2,311,860 | 1,357,800 | 1,488,200 | 1,163,500 |
| Quick ratio | 0.37 | 0.28 | 0.43 | 0.42 | 0.35 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($822,854K
+ $—K
+ $—K)
÷ $2,247,530K
= 0.37
The quick ratio, also known as the acid-test 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 without selling inventory.
Based on the data provided, Silgan Holdings Inc's quick ratio has fluctuated over the years. In December 31, 2020, the quick ratio was 0.35, indicating that the company may have had challenges meeting its short-term obligations with its liquid assets at that time.
However, the quick ratio improved to 0.42 in December 31, 2021, and further to 0.43 in December 31, 2022. These increases suggest that Silgan Holdings Inc enhanced its ability to cover its short-term liabilities with its quick assets.
In December 31, 2023, the quick ratio decreased to 0.28, signaling a potential deterioration in the company's ability to meet its short-term obligations. Nonetheless, the ratio recovered to 0.37 by December 31, 2024.
Overall, while Silgan Holdings Inc experienced fluctuations in its quick ratio over the years, the general trend shows some improvement in the company's liquidity position. It is essential for the company to maintain a healthy quick ratio above 1 to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024