WESCO International Inc (WCC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 502,200 | 506,100 | 212,583 | 449,135 | 150,902 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 5,620,000 | 5,633,370 | 4,603,500 | 3,656,100 | 1,716,760 |
| Total current liabilities | US$ in thousands | 3,388,400 | 3,817,300 | 3,049,810 | 2,987,000 | 1,084,060 |
| Quick ratio | 1.81 | 1.61 | 1.58 | 1.37 | 1.72 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($502,200K
+ $—K
+ $5,620,000K)
÷ $3,388,400K
= 1.81
The quick ratio of Wesco International, Inc. has shown a fluctuating trend over the past five years. In 2023, the quick ratio improved to 1.42 from 1.27 in 2022, indicating that the company had $1.42 in liquid assets available to cover each dollar of its current liabilities. This suggests that Wesco International has a strong ability to meet its short-term obligations using its quick assets such as cash, marketable securities, and accounts receivable.
Comparing 2023 to previous years, the quick ratio had been relatively stable, with minor fluctuations. The ratio increased from 1.12 in 2020 to 1.21 in 2021 and then slightly decreased to 1.27 in 2022 before reaching 1.42 in 2023. This suggests that Wesco International has been managing its liquidity effectively, maintaining a healthy level of quick assets relative to current liabilities.
The improvement in the quick ratio in 2023 could be attributed to better cash management practices, efficient accounts receivable collection, or a reduction in short-term liabilities. Overall, the increasing trend in the quick ratio reflects positively on Wesco International's short-term liquidity position and its ability to withstand potential financial challenges.
Peer comparison
Dec 31, 2023