Whirlpool Corporation (WHR)
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 | 1,570,000 | 1,123,000 | 1,309,000 | 1,359,000 | 1,958,000 | 1,794,000 | 1,642,000 | 2,114,000 | 3,044,000 | 2,875,000 | 2,968,000 | 2,447,000 | 2,924,000 | 3,528,000 | 2,546,000 | 2,837,000 | 1,952,000 | 993,000 | 1,178,000 | 1,163,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 42,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,529,000 | 1,841,000 | 1,679,000 | 1,612,000 | 1,555,000 | 2,410,000 | 2,723,000 | 2,860,000 | 3,100,000 | 3,187,000 | 3,052,000 | 2,997,000 | 3,109,000 | 2,716,000 | 1,998,000 | 1,931,000 | 2,198,000 | 2,588,000 | 2,387,000 | 2,222,000 |
| Total current liabilities | US$ in thousands | 6,948,000 | 7,023,000 | 7,087,000 | 5,982,000 | 5,931,000 | 6,809,000 | 7,592,000 | 8,285,000 | 8,510,000 | 8,291,000 | 7,832,000 | 8,011,000 | 8,330,000 | 9,105,000 | 7,725,000 | 8,576,000 | 8,369,000 | 8,500,000 | 10,094,000 | 9,878,000 |
| Quick ratio | 0.45 | 0.42 | 0.42 | 0.50 | 0.60 | 0.62 | 0.57 | 0.60 | 0.72 | 0.73 | 0.77 | 0.68 | 0.72 | 0.69 | 0.59 | 0.56 | 0.50 | 0.42 | 0.35 | 0.34 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,570,000K
+ $—K
+ $1,529,000K)
÷ $6,948,000K
= 0.45
The quick ratio of Whirlpool Corp. has shown a declining trend over the past few quarters, starting at 0.70 in Q4 2022 and dropping to 0.55 in Q4 2023. This downward trend suggests that the company's ability to cover its short-term obligations with its most liquid assets has weakened over time.
A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term liabilities with its current assets. While a quick ratio of 0.55 in Q4 2023 is a cause for concern, it is important to note that the quick ratio of 0.60 in Q1 2023 and 0.70 in Q4 2022 were relatively stronger.
Further analysis of the components of the quick ratio, such as cash, marketable securities, and accounts receivable, would provide deeper insights into the liquidity position of Whirlpool Corp. It is advisable for the company to closely monitor its liquidity position and take necessary steps to improve its quick ratio to ensure it can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023