Trimble Inc (TRMB)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 229,800 | 271,000 | 325,700 | 237,700 | 189,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 706,600 | 676,900 | 664,300 | 620,500 | 608,200 |
| Total current liabilities | US$ in thousands | 1,829,300 | 1,462,100 | 1,188,600 | 1,311,300 | 1,190,300 |
| Quick ratio | 0.51 | 0.65 | 0.83 | 0.65 | 0.67 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($229,800K
+ $—K
+ $706,600K)
÷ $1,829,300K
= 0.51
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term liabilities.
Trimble Inc's quick ratio has shown a declining trend over the past five years. As of December 31, 2023, the quick ratio stands at 0.51, which is below 1, indicating that the company may have difficulty meeting its short-term obligations with its quick assets alone.
The decreasing quick ratio could suggest that Trimble Inc may be facing challenges in efficiently converting its current assets into cash to cover its current liabilities. This trend warrants further investigation into the company's liquidity management and operational efficiency.
It is essential for investors and stakeholders to monitor Trimble Inc's liquidity position closely, especially considering the downward trend in the quick ratio over the years. Additionally, management should focus on improving the efficiency of its current assets management to ensure the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023