Agilent Technologies Inc (A)
Cash ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,329,000 | 1,590,000 | 1,053,000 | 1,484,000 | 1,441,000 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 91,000 | 25,000 |
| Total current liabilities | US$ in thousands | 1,895,000 | 1,603,000 | 1,861,000 | 1,708,000 | 1,467,000 |
| Cash ratio | 0.70 | 0.99 | 0.57 | 0.92 | 1.00 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,329,000K
+ $0K)
÷ $1,895,000K
= 0.70
The cash ratio, calculated as the ratio of cash and cash equivalents to current liabilities, provides insight into a company's ability to cover its short-term obligations with its readily available cash resources.
Agilent Technologies Inc's cash ratio has shown some fluctuations over the past five years. In 2020, the company had a cash ratio of 1.00, indicating that it had $1.00 in cash and cash equivalents for every $1.00 of current liabilities. This suggests a strong liquidity position, as the company had sufficient cash to meet its short-term obligations.
However, in 2021, the cash ratio decreased to 0.92, and then further declined in 2022 to 0.57. This downward trend may indicate a potential strain on Agilent's liquidity position, as its cash resources relative to current liabilities decreased.
In 2023, there was a slight improvement as the cash ratio increased to 0.99, suggesting a better ability to cover short-term obligations with available cash. Finally, in 2024, the cash ratio further improved to 0.70, although it remained below the levels seen in 2020 and 2023.
Overall, Agilent Technologies Inc's cash ratio has experienced fluctuations over the past five years, with a peak in 2020 and a subsequent decrease, followed by some recovery in more recent years. Monitoring this ratio over time can provide valuable insights into the company's liquidity position and its ability to meet short-term obligations with its cash resources.
Peer comparison
Oct 31, 2024