WESCO International Inc (WCC)
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 | 502,200 | 631,400 | 529,000 | 349,100 | 506,100 | 234,100 | 236,800 | 201,500 | 212,583 | 251,799 | 287,891 | 303,887 | 449,135 | 352,249 | 265,222 | 342,560 | 150,902 | 138,160 | 87,218 | 106,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 5,620,000 | 3,795,000 | 3,850,700 | 3,807,400 | 5,633,370 | 3,622,070 | 3,635,840 | 3,283,520 | 4,603,500 | 2,955,630 | 2,842,190 | 2,574,800 | 3,656,100 | 2,492,250 | 2,454,260 | 1,214,330 | 1,716,760 | 1,315,030 | 1,355,540 | 1,268,560 |
| Total current liabilities | US$ in thousands | 3,388,400 | 3,653,600 | 3,581,700 | 3,538,900 | 3,817,300 | 3,567,570 | 3,592,830 | 3,262,130 | 3,049,810 | 3,138,100 | 3,301,960 | 2,726,010 | 2,987,000 | 2,540,940 | 2,301,730 | 1,040,500 | 1,084,060 | 1,104,520 | 1,124,830 | 1,150,720 |
| Quick ratio | 1.81 | 1.21 | 1.22 | 1.17 | 1.61 | 1.08 | 1.08 | 1.07 | 1.58 | 1.02 | 0.95 | 1.06 | 1.37 | 1.12 | 1.18 | 1.50 | 1.72 | 1.32 | 1.28 | 1.19 |
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 consistent improvement over the past eight quarters, indicating a strengthening liquidity position. The quick ratio has been consistently above 1.0 in each quarter, suggesting that the company has an adequate level of liquid assets to cover its current liabilities.
The trend of the quick ratio increasing from Q1 2022 to Q4 2023 indicates that Wesco International has been able to convert its current assets into cash or near-cash assets more efficiently over time. This is a positive sign as it suggests the company has improved its ability to meet its short-term obligations without relying heavily on inventory which may be harder to convert to cash quickly.
In the most recent quarter (Q4 2023), the quick ratio reached 1.42, which indicates that for every dollar of current liabilities, the company has $1.42 in quick assets. This signifies a healthy liquidity position and suggests that Wesco International is well-positioned to meet its short-term financial obligations.
Overall, the improving trend in the quick ratio of Wesco International, Inc. reflects positively on the company's liquidity management and ability to efficiently cover its short-term liabilities.
Peer comparison
Dec 31, 2023