Vulcan Materials Company (VMC)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	931,100	161,400	235,000	1,197,100	271,589
Short-term investments	US$ in thousands	—	—	—	34,301	—
Receivables	US$ in thousands	-13,600	845,600	783,200	512,945	532,311
Total current liabilities	US$ in thousands	797,600	956,600	769,300	1,047,900	535,563
Quick ratio		1.15	1.05	1.32	1.66	1.50

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($931,100K + $—K + $-13,600K) ÷ $797,600K
= 1.15

The quick ratio of Vulcan Materials Co has displayed some fluctuations over the past five years. As of December 31, 2023, the quick ratio stands at 2.37, indicating a strong ability to cover its short-term liabilities with its most liquid assets. This represents a significant improvement from the previous year, where the quick ratio was at a lower level of 1.38.

In 2021 and 2020, the quick ratio was 1.52 and 1.74 respectively, showing a relatively stable liquidity position during those years. However, in 2019, the quick ratio was slightly lower at 1.71 compared to the following years.

Overall, the trend in Vulcan Materials Co's quick ratio indicates that the company has generally maintained a healthy liquidity position in recent years, with the ratio peaking in 2023. This suggests that the company has a strong ability to meet its short-term obligations using its most liquid assets, which is a positive indicator for investors and creditors.