Westinghouse Air Brake Technologies Corp (WAB)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 615,000 | 534,000 | 473,000 | 599,000 | 604,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,180,000 | 1,055,000 | 1,085,000 | 969,300 | 1,663,900 |
| Total current liabilities | US$ in thousands | 4,056,000 | 3,467,000 | 2,910,000 | 3,226,000 | 3,258,000 |
| Quick ratio | 0.44 | 0.46 | 0.54 | 0.49 | 0.70 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($615,000K
+ $—K
+ $1,180,000K)
÷ $4,056,000K
= 0.44
The quick ratio of Westinghouse Air Brake Technologies Corp has displayed a declining trend over the past five years. The ratio decreased from 0.74 in 2019 to 0.63 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over this period.
A quick ratio below 1.0 suggests that the company may have difficulty in meeting its short-term liabilities without relying on selling inventory or obtaining additional financing. The declining trend in the quick ratio may raise concerns about the company's liquidity position and its ability to handle immediate financial obligations.
Further analysis and monitoring of the company's cash, equivalents, and marketable securities levels, as well as its current liabilities, are recommended to assess the overall liquidity health of Westinghouse Air Brake Technologies Corp.
Peer comparison
Dec 31, 2023