Simpson Manufacturing Company Inc (SSD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 239,371 | 429,822 | 300,742 | 301,155 | 274,639 |
| Short-term investments | US$ in thousands | — | — | 300,742 | 301,155 | 2,466 |
| Receivables | US$ in thousands | 284,392 | 283,975 | 269,124 | 231,021 | 165,128 |
| Total current liabilities | US$ in thousands | 366,348 | 361,257 | 348,563 | 244,602 | 194,061 |
| Quick ratio | 1.43 | 1.98 | 2.50 | 3.41 | 2.28 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($239,371K
+ $—K
+ $284,392K)
÷ $366,348K
= 1.43
The quick ratio of Simpson Manufacturing Company Inc has fluctuated over the years, with a notable increase from 2020 to 2021, reaching 3.41. This indicates that the company had $3.41 in liquid assets available to cover each dollar of current liabilities in 2021. However, there was a decrease in the quick ratio in 2022 to 2.50, followed by a further decline in 2023 to 1.98, indicating a potential deterioration in the company's short-term liquidity position. The ratio dropped even lower in 2024 to 1.43, suggesting that the company may face challenges in meeting its immediate financial obligations with its current liquid assets alone. Overall, the trend in the quick ratio shows variability in the company's short-term liquidity performance over the specified period.
Peer comparison
Dec 31, 2024