Tootsie Roll Industries Inc (TR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 75,915 | 53,270 | 105,840 | 166,841 | 138,960 |
| Short-term investments | US$ in thousands | 95,507 | 96,128 | 39,968 | 42,090 | 100,444 |
| Receivables | US$ in thousands | 55,568 | 58,556 | 54,921 | 41,209 | 45,044 |
| Total current liabilities | US$ in thousands | 94,888 | 90,134 | 79,968 | 70,021 | 79,544 |
| Quick ratio | 2.39 | 2.31 | 2.51 | 3.57 | 3.58 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($75,915K
+ $95,507K
+ $55,568K)
÷ $94,888K
= 2.39
Tootsie Roll Industries, Inc.'s quick ratio has shown some fluctuations over the past five years. The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates better short-term liquidity and financial health.
From 2019 to 2020, Tootsie Roll Industries, Inc.'s quick ratio decreased from 3.69 to 3.73, indicating a slight improvement in liquidity. However, the trend reversed in the following years as the quick ratio declined to 2.66 in 2021, and then further dropped to 2.49 in 2022. The company experienced a notable increase in liquidity in 2023 with a quick ratio of 2.59, yet it still remains below the levels observed in 2020 and 2019.
Overall, while Tootsie Roll Industries, Inc. has maintained a quick ratio above 1, indicating that it has sufficient liquid assets to cover its current liabilities, the fluctuations in the quick ratio over the years suggest varying levels of short-term liquidity. It may be beneficial for the company to focus on stabilizing and potentially improving its quick ratio in the future to ensure sound financial health.
Peer comparison
Dec 31, 2023