Sterling Construction Company Inc (STRL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 664,195 | 471,563 | 181,544 | 60,945 | 66,185 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 340,302 | 358,541 | 386,571 | 285,820 | 279,052 |
| Total current liabilities | US$ in thousands | 741,958 | 678,168 | 446,611 | 351,760 | 321,884 |
| Quick ratio | 1.35 | 1.22 | 1.27 | 0.99 | 1.07 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($664,195K
+ $—K
+ $340,302K)
÷ $741,958K
= 1.35
The quick ratio of Sterling Construction Company Inc. demonstrates a generally favorable liquidity position over the period from December 31, 2020, to December 31, 2024.
At the end of 2020, the quick ratio stood at 1.07, indicating that the company had slightly more than enough liquid assets to cover its current liabilities without relying on inventory sales. In 2021, the ratio decreased marginally to 0.99, approaching a value just below the ideal benchmark of 1.0, which could suggest a slight tightening of liquidity or a shift in current asset composition.
Subsequently, the ratio increased significantly in 2022 to 1.27, highlighting an improvement in the company's liquidity position, with liquid assets well surpassing short-term obligations. This upward movement suggests enhanced liquidity management or a healthier composition of easily convertible assets during that period.
In 2023, the ratio experienced a minor decline to 1.22 but remained well above parity, maintaining a solid liquidity buffer. The most recent data point for 2024 shows an increase to 1.35, which underscores further strengthening of liquidity reserves.
Overall, the trend indicates that Sterling Construction Company Inc. has maintained a relatively stable and improving liquidity profile over these years, with quick ratios consistently above or approaching the critical threshold of 1.0, thus reflecting prudent management of liquid assets relative to short-term liabilities.
Peer comparison
Dec 31, 2024