Timken Company (TKR)
Quick ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 418,900 | 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 | 209,500 | 181,400 | 166,800 | 239,500 |
| Short-term investments | US$ in thousands | 31,600 | 41,800 | 38,200 | 38,600 | 39,200 | 24,700 | 30,600 | — | — | — | — | — | — | — | — | — | 25,800 | — | — | — |
| Receivables | US$ in thousands | 671,700 | 706,500 | 811,900 | 758,100 | 699,600 | 735,500 | 756,300 | 743,900 | 626,400 | 700,200 | 704,400 | 712,300 | 581,100 | 571,500 | 541,600 | 577,700 | 545,100 | 548,300 | 589,900 | 611,300 |
| Total current liabilities | US$ in thousands | 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 | 736,600 | 704,600 | 696,300 | 683,600 |
| Quick ratio | 0.76 | 0.74 | 1.17 | 1.20 | 1.06 | 0.88 | 1.19 | 1.35 | 0.99 | 1.14 | 1.18 | 1.11 | 1.06 | 1.19 | 1.44 | 1.25 | 1.06 | 1.04 | 1.09 | 1.24 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($418,900K
+ $31,600K
+ $671,700K)
÷ $1,471,300K
= 0.76
The quick ratio of Timken Co. for the most recent quarter, Q4 2023, was 0.96, indicating that the company had $0.96 in liquid assets available to cover each $1 of its current liabilities. This suggests a slight decrease in liquidity compared to the previous quarter, Q3 2023, where the quick ratio was 0.93.
Looking further back, the quick ratio has varied over the past year. In Q2 and Q3 of 2023, the quick ratio was relatively high at 1.42 and 1.44, respectively, indicating a healthy liquidity position. However, there was a sharp decline in Q1 2023 to 1.46, followed by a decrease to 1.29 in Q4 2022 and 1.09 in Q3 2022, which may have reflected some liquidity challenges during that period.
The quick ratio rebounded to 1.66 in Q1 2022, showing strong liquidity at the beginning of the year. Overall, while the quick ratio has fluctuated, it generally indicates that Timken Co. has had adequate liquid assets to cover its short-term financial obligations, with some periods of stronger liquidity positions than others.
Peer comparison
Dec 31, 2023