Olympic Steel Inc (ZEUS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 13,224 | 12,189 | 9,812 | 5,533 | 5,742 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 191,149 | 219,789 | 284,570 | 151,601 | 133,572 |
| Total current liabilities | US$ in thousands | 180,237 | 164,702 | 224,336 | 126,725 | 101,087 |
| Quick ratio | 1.13 | 1.41 | 1.31 | 1.24 | 1.38 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($13,224K
+ $—K
+ $191,149K)
÷ $180,237K
= 1.13
The quick ratio of Olympic Steel Inc. has shown fluctuations over the past five years. In 2023, the quick ratio decreased to 1.20 from 1.46 in 2022. Despite the decrease, the company still maintained a healthy level of liquidity, indicating its ability to cover its short-term liabilities with its most liquid assets. However, a decreasing trend in the quick ratio may raise concerns about the company's ability to meet its short-term obligations in the near future.
In 2021, the quick ratio was 1.36, showing a slight decrease from 1.45 in 2019. This suggests a relatively stable liquidity position for the company during that period.
Overall, Olympic Steel Inc. has generally maintained a quick ratio above 1, indicating that it has an adequate level of liquid assets to cover its current liabilities. However, it is important to closely monitor the trend in the quick ratio to assess any potential changes in the company's liquidity position.
Peer comparison
Dec 31, 2023