Waters Corporation (WAT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 324,421 | 395,076 | 480,529 | 501,234 | 436,695 |
| Short-term investments | US$ in thousands | 934 | 898 | 862 | 68,051 | 6,451 |
| Receivables | US$ in thousands | 733,365 | 702,168 | 722,892 | 612,648 | 573,316 |
| Total current liabilities | US$ in thousands | 789,758 | 789,580 | 785,737 | 680,508 | 804,983 |
| Quick ratio | 1.34 | 1.39 | 1.53 | 1.74 | 1.26 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($324,421K
+ $934K
+ $733,365K)
÷ $789,758K
= 1.34
The quick ratio of Waters Corporation has shown a positive trend over the past five years. Starting at 1.26 in December 31, 2020, it increased steadily to reach 1.74 by December 31, 2021, indicating an improvement in the company's short-term liquidity and ability to meet its immediate obligations. However, there was a slight decrease to 1.53 by December 31, 2022, followed by a further decline to 1.39 by December 31, 2023. The ratio slightly decreased once again to 1.34 by December 31, 2024.
Overall, the quick ratio remained above the acceptable threshold of 1, suggesting that Waters Corporation has had a sufficient level of highly liquid assets to cover its current liabilities during the period under review. This signifies the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024