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.
Peer comparison
Sep 30, 2024