Timken Company (TKR)
Quick ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 373,200 | 412,700 | 471,000 | 421,900 | 419,300 | 367,900 | 344,300 | 330,500 | 331,600 | 300,900 | 305,300 | 424,500 | 257,100 | 261,800 | 305,500 | 302,300 | 320,300 | 313,100 | 415,600 | 387,500 |
| Short-term investments | US$ in thousands | — | 15,100 | 10,200 | 11,400 | 31,600 | 41,800 | 38,200 | 38,600 | 39,200 | 24,700 | 30,600 | 57,800 | 56,900 | 43,600 | 52,000 | 47,200 | 37,600 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 820,500 | 910,300 | 940,700 | 1,442,700 | 1,471,300 | 1,503,900 | 1,022,400 | 940,000 | 1,012,400 | 1,209,000 | 920,500 | 866,200 | 896,600 | 846,000 | 857,300 | 916,800 | 848,000 | 740,400 | 664,800 | 769,800 |
| Quick ratio | 0.45 | 0.47 | 0.51 | 0.30 | 0.31 | 0.27 | 0.37 | 0.39 | 0.37 | 0.27 | 0.36 | 0.56 | 0.35 | 0.36 | 0.42 | 0.38 | 0.42 | 0.42 | 0.63 | 0.50 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($373,200K
+ $—K
+ $—K)
÷ $820,500K
= 0.45
The quick ratio of Timken Company has fluctuated over the past few years, indicating variations in its short-term liquidity position. The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets.
From March 31, 2020, to December 31, 2022, the quick ratio ranged between 0.27 to 0.63, showing some volatility in the company's ability to cover its current liabilities with its quick assets.
The ratio experienced a significant increase to 0.56 on March 31, 2022, before dropping back to 0.27 on September 30, 2022. This suggests fluctuations in the company's short-term liquidity position.
However, from March 31, 2023, the quick ratio gradually improved, reaching 0.51 on June 30, 2024. This uptrend indicates a stronger ability to meet short-term obligations with liquid assets over this period.
Overall, the trend in Timken Company's quick ratio reflects fluctuations in its short-term liquidity position, emphasizing the importance of monitoring liquidity closely to ensure the company can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024