Simpson Manufacturing Company Inc (SSD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 429,822 | 300,742 | 301,155 | 274,639 | 230,210 |
| Short-term investments | US$ in thousands | — | 300,742 | 301,155 | 2,466 | — |
| Receivables | US$ in thousands | 283,975 | 269,124 | 231,021 | 165,128 | 139,364 |
| Total current liabilities | US$ in thousands | 361,257 | 348,563 | 244,602 | 194,061 | 158,907 |
| Quick ratio | 1.98 | 2.50 | 3.41 | 2.28 | 2.33 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($429,822K
+ $—K
+ $283,975K)
÷ $361,257K
= 1.98
The quick ratio of Simpson Manufacturing Co., Inc. has shown fluctuations over the past five years, ranging from 2.11 in 2023 to 2.45 in 2019. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities. Simpson Manufacturing Co., Inc. has consistently maintained a quick ratio above 1 over the years, suggesting a strong ability to meet its short-term obligations without relying heavily on inventory.
While the quick ratio has fluctuated, the downward trend from 2.45 in 2019 to 2.11 in 2023 may raise some concerns about the company's liquidity position. However, the current ratio remains above 1, indicating that Simpson Manufacturing Co., Inc. is still able to cover its short-term liabilities comfortably.
Overall, based on the quick ratio trend, it appears that Simpson Manufacturing Co., Inc. has managed its liquidity well, but investors and stakeholders may want to monitor any further fluctuations in the ratio to ensure ongoing financial stability.
Peer comparison
Dec 31, 2023