Sensata Technologies Holding NV (ST)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 508,104 | 1,225,520 | 1,708,960 | 1,861,980 | 774,119 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 744,129 | 742,382 | 653,438 | 576,647 | 557,874 |
| Total current liabilities | US$ in thousands | 823,718 | 1,178,970 | 836,259 | 1,495,160 | 634,746 |
| Quick ratio | 1.52 | 1.67 | 2.82 | 1.63 | 2.10 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($508,104K
+ $—K
+ $744,129K)
÷ $823,718K
= 1.52
The quick ratio of Sensata Technologies Holding Plc has demonstrated some fluctuations over the past five years. In 2021, the quick ratio was at its highest level of 2.98, indicating a strong ability to meet short-term liabilities using its most liquid assets. However, this ratio decreased in 2022 and 2019 to 1.81 and 2.30 respectively, but remained above the desirable threshold of 1.0, suggesting a healthy liquidity position.
In 2020 and 2023, the quick ratio returned to a level of 1.69, which indicates that the company may have had a slightly lower level of ability to cover its current liabilities with its quick assets. Despite these fluctuations, the overall trend suggests that Sensata Technologies Holding Plc has maintained a reasonable liquidity position over the years, allowing it to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023