US Foods Holding Corp (USFD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 269,000 | 211,000 | 148,000 | 828,000 | 90,000 |
| Short-term investments | US$ in thousands | 1,000 | — | — | — | — |
| Receivables | US$ in thousands | 1,854,000 | 1,700,000 | 1,469,000 | 1,084,000 | 1,455,000 |
| Total current liabilities | US$ in thousands | 3,112,000 | 2,796,000 | 2,550,000 | 1,982,000 | 2,362,000 |
| Quick ratio | 0.68 | 0.68 | 0.63 | 0.96 | 0.65 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($269,000K
+ $1,000K
+ $1,854,000K)
÷ $3,112,000K
= 0.68
The quick ratio of US Foods Holding Corp has fluctuated over the past five years, ranging from 0.63 to 0.96. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current quick assets alone.
In 2023 and 2022, the quick ratio remained stable at 0.68, suggesting a consistent ability to cover short-term obligations. However, the ratio decreased to 0.63 in 2021, raising some concerns about the company's liquidity position that year. The significant increase to 0.96 in 2020 indicates a strong liquidity position, where the company had more than enough quick assets to cover its short-term liabilities.
Overall, the trend in the quick ratio fluctuates, which may indicate varying levels of liquidity risk and the need for careful monitoring of the company's short-term financial health.
Peer comparison
Dec 31, 2023