Westinghouse Air Brake Technologies Corp (WAB)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 615,000 | 385,000 | 364,000 | 410,000 | 534,000 | 514,000 | 501,000 | 488,000 | 473,000 | 456,000 | 453,500 | 483,500 | 599,000 | 559,300 | 587,900 | 615,900 | 604,200 | 587,400 | 461,371 | 512,870 |
| Short-term investments | US$ in thousands | — | 23,000 | 7,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,180,000 | 1,339,000 | 1,250,000 | 1,181,000 | 1,055,000 | 1,004,000 | 1,000,000 | 998,000 | 1,085,000 | 960,300 | 1,020,900 | 985,300 | 969,300 | 1,020,000 | 964,400 | 1,672,000 | 1,663,900 | 1,673,300 | 1,707,410 | 1,726,820 |
| Total current liabilities | US$ in thousands | 4,056,000 | 3,891,000 | 4,173,000 | 4,165,000 | 3,467,000 | 3,328,000 | 3,190,000 | 2,880,000 | 2,910,000 | 2,811,600 | 2,844,700 | 3,168,900 | 3,226,000 | 3,228,600 | 3,483,200 | 2,981,600 | 3,258,000 | 3,198,900 | 3,211,320 | 3,254,440 |
| Quick ratio | 0.44 | 0.45 | 0.39 | 0.38 | 0.46 | 0.46 | 0.47 | 0.52 | 0.54 | 0.50 | 0.52 | 0.46 | 0.49 | 0.49 | 0.45 | 0.77 | 0.70 | 0.71 | 0.68 | 0.69 |
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 been showing a declining trend over the past four quarters, from 0.72 in Q1 2022 to 0.54 in Q1 2023. This indicates that the company may have fewer liquid assets relative to its current liabilities in recent quarters.
A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations if they all came due at once. While a quick ratio of 0.54 in Q1 2023 is a cause for concern, it is essential to analyze the trend over multiple periods and explore the reasons behind the declining ratio.
Further investigation into the components of the quick ratio, such as current assets excluding inventory and current liabilities, would provide additional insights into the company's liquidity position. It is recommended that Westinghouse Air Brake Technologies Corp closely monitors its liquidity management to ensure it can meet its short-term financial obligations in a timely manner.
Peer comparison
Dec 31, 2023