Westinghouse Air Brake Technologies Corp (WAB)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 706,000 | 615,000 | 534,000 | 473,000 | 599,000 |
| Short-term investments | US$ in thousands | — | 154,000 | — | — | — |
| Receivables | US$ in thousands | 1,152,000 | 1,180,000 | 1,055,000 | 1,085,000 | 969,300 |
| Total current liabilities | US$ in thousands | 3,792,000 | 4,056,000 | 3,467,000 | 2,910,000 | 3,226,000 |
| Quick ratio | 0.49 | 0.48 | 0.46 | 0.54 | 0.49 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($706,000K
+ $—K
+ $1,152,000K)
÷ $3,792,000K
= 0.49
The quick ratio of Westinghouse Air Brake Technologies Corp has exhibited some fluctuations over the past five years. Starting at 0.49 on December 31, 2020, it increased to 0.54 by December 31, 2021, suggesting an improvement in the company's short-term liquidity position. However, the ratio decreased slightly to 0.46 by December 31, 2022, indicating a potential strain on the company's ability to meet its short-term obligations using its most liquid assets.
Despite this decrease, the ratio slightly recovered to 0.48 by December 31, 2023, but remained below the initial level observed in 2020. By December 31, 2024, the quick ratio stood at 0.49, showing a modest improvement compared to the previous year. Overall, while there have been fluctuations in the quick ratio, Westinghouse Air Brake Technologies Corp has maintained a ratio below 1.0 over the analyzed period, which may indicate a dependency on inventory or a conservative approach to managing short-term liquidity.
Peer comparison
Dec 31, 2024