Tempur Sealy International Inc (TPX)
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 | 74,900 | 91,600 | 101,800 | 91,000 | 69,400 | 94,100 | 110,300 | 116,300 | 300,700 | 503,300 | 58,100 | 290,500 | 65,000 | 229,200 | 146,800 | 197,000 | 64,900 | 52,900 | 38,300 | 39,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 456,200 | 525,800 | 476,100 | 461,500 | 422,600 | 488,200 | 481,600 | 426,400 | 419,500 | 510,200 | 462,500 | 397,400 | 383,700 | 440,800 | 341,800 | 372,800 | 372,000 | 431,200 | 386,300 | 356,400 |
| Total current liabilities | US$ in thousands | 908,200 | 1,058,900 | 1,006,700 | 1,022,800 | 981,200 | 1,077,900 | 1,057,100 | 1,101,100 | 1,053,400 | 1,159,400 | 858,300 | 895,700 | 974,800 | 1,026,700 | 1,001,700 | 750,400 | 773,300 | 848,000 | 738,700 | 725,500 |
| Quick ratio | 0.58 | 0.58 | 0.57 | 0.54 | 0.50 | 0.54 | 0.56 | 0.49 | 0.68 | 0.87 | 0.61 | 0.77 | 0.46 | 0.65 | 0.49 | 0.76 | 0.56 | 0.57 | 0.57 | 0.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($74,900K
+ $—K
+ $456,200K)
÷ $908,200K
= 0.58
The quick ratio of Tempur Sealy International Inc has been relatively consistent over the past eight quarters, ranging from 0.58 to 0.72. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities without having to sell inventory. Tempur Sealy's quick ratio has been consistently below 1, which may suggest a potential liquidity risk. However, the gradual improvement in the quick ratio from 0.58 in Q1 2022 to 0.72 in Q3 2023 indicates a positive trend in the company's liquidity position.
Overall, while the quick ratio for Tempur Sealy International Inc is below the ideal threshold of 1, the improving trend suggests that the company may be managing its liquidity more effectively over time. Further monitoring of this ratio is recommended to assess the company's short-term liquidity position.
Peer comparison
Dec 31, 2023