Wabash National Corporation (WNC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 179,271 | 58,245 | 71,778 | 217,677 | 140,516 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 194,830 | 257,935 | 186,897 | 119,374 | 181,438 |
| Total current liabilities | US$ in thousands | 352,209 | 347,468 | 289,325 | 235,753 | 259,378 |
| Quick ratio | 1.06 | 0.91 | 0.89 | 1.43 | 1.24 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($179,271K
+ $—K
+ $194,830K)
÷ $352,209K
= 1.06
The quick ratio, also known as the acid-test ratio, provides insight into a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio of 1 or above typically signals that a company can meet its current obligations without having to rely on selling inventory, which may take time.
Analyzing Wabash National Corp.'s quick ratio over the last five years, we can observe fluctuations. In 2023, the quick ratio improved to 1.17 from 1.00 in 2022, indicating a stronger ability to cover short-term obligations with liquid assets. This increase may suggest better liquidity management or a reduction in current liabilities.
Comparing 2023 to previous years, the quick ratio is higher than in 2021 and 2022 but lower than in 2020 and 2019. The significant drop in 2021 may have been concerning, as the quick ratio dipped to 1.01, closer to the benchmark of 1. However, the ratios for 2020 (1.61) and 2019 (1.35) illustrate a healthier liquidity position in those respective years.
Overall, while Wabash National Corp.'s recent quick ratio of 1.17 is above the ideal threshold of 1, indicating a satisfactory ability to cover short-term obligations, it would be essential to monitor trends over time to ensure continued liquidity stability and effective management of current liabilities.