Tegna Inc (TGNA)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 361,036 551,681 56,989 40,968 29,404
Short-term investments US$ in thousands — — — 20,300 32,400
Receivables US$ in thousands 633,744 671,811 657,776 564,786 601,405
Total current liabilities US$ in thousands 423,372 391,024 375,132 424,175 361,158
Quick ratio 2.35 3.13 1.91 1.48 1.84

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($361,036K + $—K + $633,744K) ÷ $423,372K
= 2.35

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio indicates a stronger liquidity position, as the company has more quick assets (cash, marketable securities, and accounts receivable) relative to its current liabilities.

Looking at TEGNA Inc's quick ratio over the past five years, we see fluctuations in the company's liquidity position. The quick ratio was 2.48 in 2023, a decrease from 3.33 in 2022 but still relatively high compared to previous years. This suggests that TEGNA Inc had $2.48 of quick assets available to cover each dollar of current liabilities at the end of 2023.

In 2021, the quick ratio was 2.10, showing an improvement from 1.59 in 2020 but lower than the ratio in 2022 and 2023. This indicates that TEGNA Inc had a better ability to meet its short-term obligations in 2021 compared to the prior year.

Further back in 2019, the quick ratio was 1.96, indicating a stable liquidity position, albeit slightly lower than in 2023. This suggests that TEGNA Inc had $1.96 of quick assets for each dollar of current liabilities at the end of 2019.

Overall, TEGNA Inc's quick ratio has shown variability over the past five years, with fluctuations in its liquidity position. Investors and stakeholders may want to monitor the company's liquidity closely to assess its ability to meet short-term obligations effectively.