Smurfit WestRock plc (SW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 890,000 | 777,000 | 869,000 | 891,000 |
| Short-term investments | US$ in thousands | — | — | -131,000 | — |
| Receivables | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,694,000 | 3,027,000 | 2,827,000 | 2,230,000 |
| Quick ratio | 0.33 | 0.26 | 0.26 | 0.40 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($890,000K
+ $—K
+ $—K)
÷ $2,694,000K
= 0.33
The quick ratio of Smurfit WestRock plc has fluctuated over the past four years. In 2020, the quick ratio was 0.40, indicating that the company had $0.40 in liquid assets for every $1 of current liabilities, which suggests a relatively strong liquidity position. However, in 2021 and 2022, the quick ratio decreased to 0.26, indicating a decline in the company's ability to cover its short-term obligations with its most liquid assets.
The quick ratio further decreased to 0.33 in 2023, which suggests a slight improvement compared to the previous two years but still indicates a liquidity challenge. A quick ratio below 1 may raise concerns about the company's ability to meet its short-term financial obligations without having to rely on selling inventory or other less liquid assets. Overall, the trend in the quick ratio of Smurfit WestRock plc over the past four years indicates a need for the company to closely monitor its liquidity position and work towards improving it in the future.
Peer comparison
Dec 31, 2023