Tidewater Inc (TDW)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	274,437	164,192	149,037	149,933	218,290
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	3,338	-10,196	-1,000	70,330	129,700
Total current liabilities	US$ in thousands	328,731	194,787	157,942	183,179	185,677
Quick ratio		0.84	0.79	0.94	1.20	1.87

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($274,437K + $—K + $3,338K) ÷ $328,731K
= 0.84

The quick ratio is a key financial metric used to evaluate a company's short-term liquidity and its ability to meet immediate financial obligations without relying on the sale of inventory. A quick ratio below 1 indicates potential liquidity issues, as the company may struggle to cover its short-term liabilities with its most liquid assets.

For Tidewater Inc, the quick ratio has been declining over the past five years, from 1.87 in 2019 to 0.84 in 2023. This downward trend suggests that the company's ability to meet its short-term obligations has weakened over time. A quick ratio of 0.84 in 2023 means that Tidewater Inc has only $0.84 in liquid assets available to cover each $1 of its current liabilities.

It is essential for stakeholders to monitor Tidewater Inc's quick ratio closely, as a further decrease could indicate increasing financial risk and potential difficulty in servicing its short-term debts. Management may need to take actions to improve liquidity, such as reducing current liabilities or enhancing cash and cash equivalents to ensure the company's financial health and stability in the short term.