Trimble Inc (TRMB)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 738,800 | 229,800 | 271,000 | 325,700 | 237,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,788,000 | 1,829,300 | 1,462,100 | 1,188,600 | 1,311,300 |
| Quick ratio | 0.41 | 0.13 | 0.19 | 0.27 | 0.18 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($738,800K
+ $—K
+ $—K)
÷ $1,788,000K
= 0.41
The quick ratio, also known as the acid-test ratio, measures the ability of Trimble Inc to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates potential liquidity concerns.
Trimble Inc's quick ratio fluctuated over the past five years, ranging from 0.13 to 0.41. In December 31, 2020, the quick ratio was 0.18, suggesting a potential issue in meeting short-term obligations. However, by December 31, 2021, the quick ratio improved to 0.27, indicating a better ability to cover immediate liabilities with liquid assets.
In the following years, the quick ratio dropped to 0.19 in December 31, 2022, signaling a slight decline in liquidity. Subsequently, in December 31, 2023, the quick ratio decreased further to 0.13, indicating a potential strain on meeting short-term obligations with available liquid assets.
However, by December 31, 2024, Trimble Inc's quick ratio increased significantly to 0.41, reflecting a substantial improvement in liquidity and the company's ability to cover short-term liabilities with its liquid assets.
Overall, Trimble Inc's quick ratio fluctuated over the years, with varying levels of liquidity. It is essential for stakeholders to monitor the quick ratio to assess the company's short-term financial health and ability to meet its current obligations.
Peer comparison
Dec 31, 2024