Watsco Inc (WSO)
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 | 210,112 | 175,022 | 162,526 | 140,955 | 147,505 | 130,228 | 129,049 | 110,607 | 118,268 | 137,201 | 96,787 | 93,875 | 146,067 | 92,600 | 79,573 | 51,236 | 74,454 | 60,150 | 55,915 | 77,273 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 1,750 | 1,579 | 1,412 | 6,065 | 103,355 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 797,832 | 949,317 | 990,663 | 811,264 | 747,110 | 859,581 | 983,033 | 790,013 | 698,456 | 771,042 | 857,864 | 596,513 | 535,288 | 644,124 | 676,569 | 574,827 | 533,810 | 640,802 | 655,418 | 504,719 |
| Total current liabilities | US$ in thousands | 712,012 | 887,628 | 955,999 | 953,083 | 906,522 | 939,522 | 1,061,340 | 836,839 | 726,722 | 796,693 | 815,264 | 630,820 | 487,145 | 609,498 | 638,858 | 520,474 | 461,717 | 542,288 | 580,518 | 469,773 |
| Quick ratio | 1.42 | 1.27 | 1.21 | 1.00 | 0.99 | 1.05 | 1.05 | 1.08 | 1.12 | 1.14 | 1.17 | 1.10 | 1.41 | 1.38 | 1.18 | 1.20 | 1.32 | 1.29 | 1.23 | 1.24 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($210,112K
+ $—K
+ $797,832K)
÷ $712,012K
= 1.42
The quick ratio of Watsco Inc., a measure of the company's ability to meet short-term obligations with its most liquid assets, has shown fluctuations over the past eight quarters. The quick ratio has ranged from a low of 1.02 in Q4 2022 to a high of 1.47 in Q4 2023.
Overall, the quick ratio has generally been above 1, indicating that Watsco Inc. has had sufficient liquid assets to cover its current liabilities during these periods. The upward trend from Q1 2023 to Q4 2023 suggests an improvement in the company's ability to meet its short-term obligations without relying heavily on inventory.
However, it's important to note that the quick ratio dipped in Q1 2023 and Q2 2023, indicating a temporary decrease in liquidity compared to the trend observed in the later quarters. This may be worth monitoring to ensure the company's ability to maintain liquidity in the future.