Stanley Black & Decker Inc (SWK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 449,400 | 395,600 | 142,100 | 1,241,900 | 297,700 |
| Short-term investments | US$ in thousands | — | — | 1,200 | 139,100 | — |
| Receivables | US$ in thousands | 1,555,900 | 1,326,500 | 1,585,800 | 1,663,700 | 1,580,900 |
| Total current liabilities | US$ in thousands | 5,883,200 | 6,569,200 | 8,767,400 | 4,558,300 | 4,405,700 |
| Quick ratio | 0.34 | 0.26 | 0.20 | 0.67 | 0.43 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($449,400K
+ $—K
+ $1,555,900K)
÷ $5,883,200K
= 0.34
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that a company may struggle to meet its short-term obligations.
Based on the data provided for Stanley Black & Decker Inc:
- In 2023, the quick ratio was 0.34, showing an improvement from the previous year.
- However, in 2022 and 2021, the quick ratio was 0.26 and 0.20, respectively, indicating a relatively weaker position in terms of liquidity.
- The quick ratio was notably high in 2020 at 0.67, suggesting a strong ability to cover short-term obligations.
- In 2019, the quick ratio was 0.43, indicating a moderate but slightly lower liquidity position compared to 2020.
Overall, the quick ratio for Stanley Black & Decker Inc has fluctuated over the years, with 2020 standing out as a year of strong liquidity. The recent increase in 2023 may indicate improving liquidity, but it is essential to monitor future trends to assess the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023