Waters Corporation (WAT)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	395,076	480,529	501,234	436,695	335,715
Short-term investments	US$ in thousands	898	862	68,051	6,451	1,429
Receivables	US$ in thousands	702,168	722,892	612,648	573,316	587,734
Total current liabilities	US$ in thousands	789,580	785,737	680,508	804,983	591,334
Quick ratio		1.39	1.53	1.74	1.26	1.56

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($395,076K + $898K + $702,168K) ÷ $789,580K
= 1.39

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 indicates that a company has equal amounts of liquid assets and current liabilities.

Waters Corp.'s quick ratio has fluctuated over the past five years. In 2023, the quick ratio stands at 1.57, slightly lower than the previous year but still indicating that the company has $1.57 of liquid assets available to cover each $1 of its current liabilities.

Compared to the ratios of 2021 and 2019, the quick ratio has decreased, indicating a potential decrease in the company's ability to cover its short-term obligations with its liquid assets. This downward trend may suggest a decline in liquidity or a higher proportion of current liabilities relative to liquid assets.

However, it is important to note that the quick ratio of 1.57 is still above 1, which generally indicates a healthy liquidity position. Investors and creditors may view this as a positive sign of Waters Corp.'s ability to meet its immediate payment obligations.