Cactus Inc (WHD)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 342,843 133,792 344,527 301,669 288,659
Short-term investments US$ in thousands — — — — —
Receivables US$ in thousands — — — — —
Total current liabilities US$ in thousands 178,824 175,660 116,649 92,574 48,915
Quick ratio 1.92 0.76 2.95 3.26 5.90

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($342,843K + $—K + $—K) ÷ $178,824K
= 1.92

The quick ratio of Cactus Inc has shown a declining trend over the years from 5.90 in December 2020 to 1.92 in December 2024. This indicates a decrease in the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 is generally considered healthy, suggesting the company has an adequate level of liquid assets to meet its short-term obligations. However, the significant drop in the quick ratio over the years may raise concerns about the company's liquidity position and its ability to meet its short-term financial commitments. Investors and stakeholders may need to closely monitor this trend and assess the company's liquidity management strategies.