Upbound Group Inc. (UPBD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 93,705 | 144,141 | 108,333 | 159,449 | 70,494 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 613,804 | 445,168 | 369,899 | 388,116 | 343,050 |
| Quick ratio | 0.15 | 0.32 | 0.29 | 0.41 | 0.21 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($93,705K
+ $—K
+ $—K)
÷ $613,804K
= 0.15
The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio indicates better short-term liquidity and financial health.
For Upbound Group Inc., the quick ratio has fluctuated over the past five years. In 2023, the quick ratio stands at 0.15, which is significantly lower compared to the previous two years. This suggests that the company may have difficulty meeting its short-term liabilities with its liquid assets alone.
In 2022, the quick ratio was 0.32, showing some improvement from the previous year. However, it declined from 0.41 in 2020, indicating a potential weakening of liquidity position. The quick ratio was at its lowest in 2019 at 0.21, reflecting lower liquidity levels at that time.
Overall, Upbound Group Inc.'s quick ratio has been volatile, with fluctuations indicating varying levels of liquidity risk. Investors and creditors should closely monitor this metric to assess the company's ability to handle short-term financial obligations effectively.
Peer comparison
Dec 31, 2023