Tegna Inc (TGNA)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 693,214 361,036 551,681 56,989 40,968
Short-term investments US$ in thousands — — — — 136,219
Receivables US$ in thousands — — — — —
Total current liabilities US$ in thousands 466,280 423,372 391,024 375,132 424,175
Quick ratio 1.49 0.85 1.41 0.15 0.42

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($693,214K + $—K + $—K) ÷ $466,280K
= 1.49

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term obligations, while a ratio above 1 suggests that the company is in a good position to cover its short-term debts.

Tegna Inc's quick ratio has shown significant fluctuations over the years. As of December 31, 2020, the quick ratio was 0.42, indicating that the company may have had some difficulty meeting its short-term obligations with its liquid assets. By December 31, 2021, the quick ratio had decreased further to 0.15, signaling potential liquidity challenges at that time.

However, the company's liquidity position improved substantially by December 31, 2022, with a quick ratio of 1.41, suggesting that Tegna Inc had more than enough liquid assets to cover its short-term liabilities. The ratio decreased slightly to 0.85 by December 31, 2023, but remained above 1, indicating continued capacity to meet short-term obligations.

By December 31, 2024, Tegna Inc's quick ratio increased to 1.49, emphasizing a strong liquidity position at that point in time. Overall, Tegna Inc's quick ratio trend reflects varying levels of liquidity over the years, with improvements noted in later years compared to the challenges faced in earlier periods.