WESCO International Inc (WCC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 702,600 | 524,100 | 527,348 | 212,583 | 449,135 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,804,000 | 3,388,400 | 3,817,350 | 3,049,810 | 2,986,460 |
| Quick ratio | 0.18 | 0.15 | 0.14 | 0.07 | 0.15 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($702,600K
+ $—K
+ $—K)
÷ $3,804,000K
= 0.18
The quick ratio of WESCO International Inc has shown fluctuations over the past five years. As of December 31, 2020, the quick ratio was relatively low at 0.15, indicating that the company may have had difficulty meeting its short-term obligations with its most liquid assets. Subsequently, by December 31, 2021, the quick ratio decreased even further to 0.07, raising concerns about the company's ability to cover immediate liabilities without relying on inventory.
However, there was a slight improvement by December 31, 2022, where the quick ratio increased to 0.14, suggesting a better ability to pay off short-term debts with liquid assets. The trend continued to improve by December 31, 2023, with the quick ratio reaching 0.15, indicating a more favorable liquidity position.
By the end of December 31, 2024, WESCO International Inc's quick ratio further improved to 0.18, indicating that the company may be in a better position to meet its short-term financial obligations using its quick assets.
Overall, the fluctuating trend of the quick ratio over the five-year period reflects varying levels of liquidity and the company's ability to manage its short-term financial obligations. It is essential for stakeholders to monitor these ratios to assess the company's financial health and liquidity position.
Peer comparison
Dec 31, 2024