Cactus Inc (WHD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 133,792 | 344,527 | 301,669 | 288,659 | 202,603 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 232,181 | 173,168 | 113,305 | 52,768 | 111,665 |
| Total current liabilities | US$ in thousands | 175,660 | 116,649 | 92,574 | 48,915 | 91,126 |
| Quick ratio | 2.08 | 4.44 | 4.48 | 6.98 | 3.45 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($133,792K
+ $—K
+ $232,181K)
÷ $175,660K
= 2.08
The quick ratio of Cactus Inc has shown a decreasing trend over the past five years. The quick ratio decreased from 3.45 in 2019 to 2.08 in 2023. This indicates a potential deterioration in the company's short-term liquidity position.
A quick ratio of 2.08 as of December 31, 2023, means that for every dollar of current liabilities, Cactus Inc has $2.08 of liquid assets available to cover those obligations. This suggests that the company may have a slightly lower ability to meet its short-term liabilities using its most liquid assets compared to prior years.
It is important for Cactus Inc to carefully monitor its quick ratio and take steps to improve its short-term liquidity position to ensure it can meet its obligations as they come due. Further analysis of the composition of current assets and liabilities may provide insights into specific areas that need attention to enhance the company's liquidity management.
Peer comparison
Dec 31, 2023