Smurfit WestRock plc (SW)
Quick ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Jun 30, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 27 | 0 | 890,000 | 615,000 | 777,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 12 | — | 2,694,000 | 2,678,000 | 3,027,000 |
| Quick ratio | 2.25 | — | 0.33 | 0.23 | 0.26 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($27K
+ $—K
+ $—K)
÷ $12K
= 2.25
The quick ratio of Smurfit WestRock plc has shown fluctuations over the past few quarters. As of June 30, 2024, the quick ratio stands at a robust 2.25, indicating that the company has $2.25 in liquid assets available to cover each dollar of current liabilities. This suggests a strong liquidity position and the ability to meet short-term obligations comfortably.
However, it is notable that the quick ratio was not disclosed for the quarter ended March 31, 2024, which may indicate a lack of sufficient information for that period. Prior to that, the quick ratio was relatively low at 0.33 as of December 31, 2023, implying a potential strain on the company's ability to meet immediate financial commitments with its readily available assets.
Comparing the most recent ratio to historical data, there has been a significant improvement from the ratios reported in June 30, 2023 (0.23) and December 31, 2022 (0.26). This upward trend suggests that Smurfit WestRock plc has strengthened its liquidity position over time, which is a positive indicator for investors and creditors.
In conclusion, the quick ratio of Smurfit WestRock plc has displayed variability but has recently demonstrated a favorable liquidity position. However, it is essential for stakeholders to monitor future trends in the quick ratio to assess the company's ongoing ability to meet its short-term financial obligations effectively.
Peer comparison
Jun 30, 2024