United States Steel Corporation (X)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,948,000 | 3,504,000 | 2,522,000 | 1,985,000 | 749,000 |
| Short-term investments | US$ in thousands | 19,000 | — | -34,000 | 1,177,000 | — |
| Receivables | US$ in thousands | -38,000 | 1,635,000 | 2,089,000 | 994,000 | 956,000 |
| Total current liabilities | US$ in thousands | 3,948,000 | 3,959,000 | 3,852,000 | 2,656,000 | 2,625,000 |
| Quick ratio | 0.74 | 1.30 | 1.19 | 1.56 | 0.65 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,948,000K
+ $19,000K
+ $-38,000K)
÷ $3,948,000K
= 0.74
The quick ratio, also known as the acid-test ratio, measures the ability of United States Steel Corp. to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.
Over the past five years, United States Steel Corp.'s quick ratio has shown a fluctuating trend. In 2019, the quick ratio was relatively low at 0.77, indicating a potential liquidity strain. However, over the following years, there was an improvement in the company's liquidity position as the quick ratio increased to 1.14 in 2020, 1.28 in 2021, 1.39 in 2022, and 1.22 in 2023.
The quick ratio of above 1 in the recent years suggests that United States Steel Corp. has been successfully maintaining a healthy liquidity position, with sufficient liquid assets to meet its short-term obligations. This trend indicates that the company has improved its ability to cover its current liabilities with its quick assets, which is a positive signal for its financial health and ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2023