Stanley Black & Decker Inc (SWK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 290,500 | 449,400 | 395,600 | 142,300 | 1,381,000 |
| Short-term investments | US$ in thousands | — | -600 | — | 1,200 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,680,100 | 5,883,200 | 6,560,100 | 8,760,500 | 4,558,300 |
| Quick ratio | 0.11 | 0.08 | 0.06 | 0.02 | 0.30 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($290,500K
+ $—K
+ $—K)
÷ $2,680,100K
= 0.11
The quick ratio of Stanley Black & Decker Inc has shown a varying trend over the past five years. As of December 31, 2020, the quick ratio was relatively low at 0.30, indicating a moderate ability to meet its short-term obligations using its most liquid assets. However, by December 31, 2021, the quick ratio experienced a significant drop to 0.02, reflecting a potential liquidity strain and signaling a challenge in meeting short-term liabilities without relying heavily on inventory.
Subsequently, there was a slight improvement in the quick ratio by December 31, 2022, reaching 0.06, although it remained below the desirable threshold of 1. This suggests that the company may still face difficulties in meeting immediate financial obligations with its current liquid assets. By December 31, 2023, there was a further increase in the quick ratio to 0.08, indicating a gradual enhancement in the company's ability to cover short-term liabilities with its quick assets.
As of December 31, 2024, the quick ratio continued its upward trend, rising to 0.11. While this represents a positive trajectory, the quick ratio remains below the ideal level of 1, suggesting ongoing challenges in quickly converting assets to cash to meet short-term obligations. Overall, the fluctuating quick ratio of Stanley Black & Decker Inc indicates the need for careful monitoring of liquidity management to ensure stability in meeting financial commitments.
Peer comparison
Dec 31, 2024