Smurfit WestRock plc (SW)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | — | 983,806 | 777,000 | 869,000 | 891,000 |
| Short-term investments | US$ in thousands | — | 29,000 | — | -131,000 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | — | 2,977,950 | 3,027,000 | 2,827,000 | 2,230,000 |
| Quick ratio | — | 0.34 | 0.26 | 0.26 | 0.40 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($—K
+ $—K
+ $—K)
÷ $—K
= —
The quick ratio of Smurfit WestRock plc has exhibited fluctuations over the years, starting at 0.40 on December 31, 2020, declining to 0.26 by December 31, 2021, and maintaining this level through December 31, 2022. Subsequently, there was a slight improvement to 0.34 by December 31, 2023 based on the available data. Notably, for December 31, 2024, the quick ratio data is unavailable.
A quick ratio below 1 typically indicates that a company may have difficulty meeting its short-term obligations with its most liquid assets. In the case of Smurfit WestRock plc, the declining trend in the quick ratio from 2020 to 2022 suggests a potential deterioration in the company's liquidity position during that period. However, the slight increase in the quick ratio by the end of 2023 indicates a modest improvement in the company's ability to cover its short-term debt obligations with liquid assets.
It is important to note that a quick ratio of 0.26 or 0.34 may prompt further scrutiny into the company's liquidity management and working capital efficiency to ensure it can meet its short-term financial commitments effectively.
Peer comparison
Dec 31, 2024