Tidewater Inc (TDW)

Quick ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Cash	US$ in thousands	280,840	315,897	280,853	274,437	275,070	171,261	165,145	164,192	115,014	87,981	136,234	149,037	127,414	131,157	131,858	149,933	192,243	203,119	187,802	218,290
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	-3,086	-3,350	-4	3,338	—	—	—	-10,196	-11,642	-12,215	8,379	-1,000	68,217	64,922	62,474	70,330	65,692	65,766	128,204	129,700
Total current liabilities	US$ in thousands	273,573	340,224	339,137	328,731	332,484	206,443	215,343	194,787	184,403	187,621	125,499	157,942	299,880	162,660	172,648	183,179	163,294	162,159	189,635	185,677
Quick ratio		1.02	0.92	0.83	0.84	0.83	0.83	0.77	0.79	0.56	0.40	1.15	0.94	0.65	1.21	1.13	1.20	1.58	1.66	1.67	1.87

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($280,840K + $—K + $-3,086K) ÷ $273,573K
= 1.02

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing quick assets (current assets minus inventory) by current liabilities.

Analyzing Tidewater Inc's quick ratio over the past several quarters, we observe fluctuations in the ratio. The quick ratio was 1.02 as of September 30, 2024, indicating that the company had just enough quick assets to cover its current liabilities.

Looking back at the trend, we can see that the quick ratio has fluctuated between 0.40 and 1.87 over the past five years. The ratio was at its lowest at 0.40 in June 2022, indicating a weaker ability to meet short-term obligations with its quick assets.

However, Tidewater Inc improved its quick ratio significantly by September 2022, reaching 1.15, indicating a more robust liquidity position. The company maintained relatively strong quick ratios in subsequent quarters until March 2024, when the ratio dropped to 0.83.

Investors and creditors typically prefer a quick ratio greater than 1, as it suggests that a company can cover its short-term liabilities without relying on the sale of inventory. Therefore, Tidewater Inc's recent quick ratios falling below 1 may raise concerns about its ability to meet short-term obligations using only its quick assets.

Further analysis of Tidewater Inc's cash flow, inventory management, and working capital may be necessary to understand the factors contributing to the fluctuations in the quick ratio and assess the company's overall liquidity position.