Simpson Manufacturing Company Inc (SSD)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 429,822 | 571,006 | 407,982 | 252,541 | 300,742 | 309,262 | 246,134 | 984,372 | 301,155 | 294,180 | 305,796 | 257,428 | 274,639 | 311,465 | 315,448 | 301,741 | 230,210 | 194,061 | 141,731 | 113,407 |
| Short-term investments | US$ in thousands | — | — | — | — | 300,742 | — | — | — | 301,155 | — | — | — | 2,466 | 2,475 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 283,975 | 351,164 | 387,917 | 339,674 | 269,124 | 334,449 | 375,130 | 320,428 | 231,021 | 236,535 | 249,931 | 227,201 | 165,128 | 226,447 | 233,867 | 168,736 | 139,364 | 180,898 | 191,282 | 173,140 |
| Total current liabilities | US$ in thousands | 361,257 | 427,569 | 396,948 | 330,666 | 348,563 | 346,166 | 361,396 | 306,849 | 244,602 | 245,477 | 232,454 | 224,814 | 194,061 | 191,161 | 193,414 | 162,851 | 158,907 | 165,867 | 157,241 | 150,578 |
| Quick ratio | 1.98 | 2.16 | 2.01 | 1.79 | 2.50 | 1.86 | 1.72 | 4.25 | 3.41 | 2.16 | 2.39 | 2.16 | 2.28 | 2.83 | 2.84 | 2.89 | 2.33 | 2.26 | 2.12 | 1.90 |
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 a fluctuating trend over the past eight quarters. The quick ratio ranges from a low of 1.79 in Q4 2022 to a high of 4.38 in Q1 2022, indicating variability in the company's ability to meet its short-term obligations with its most liquid assets.
Overall, the quick ratio has generally been above 1, which suggests that the company has an adequate level of liquid assets to cover its current liabilities. The quick ratio has been above 2 in most quarters, indicating a strong ability to cover short-term liabilities with liquid assets.
The sudden spike in the quick ratio to 4.38 in Q1 2022 may suggest an unusually high level of liquid assets relative to current liabilities, which could indicate conservative financial management or potential inefficiencies in asset management during that period.
In contrast, the decline in the quick ratio to 1.79 in Q4 2022 may reflect a decrease in liquid assets relative to current liabilities, which could raise concerns about the company's short-term liquidity position during that quarter.
Overall, it is important to monitor the trend of the quick ratio over time to assess Simpson Manufacturing Co., Inc.'s liquidity position and ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023