Agilent Technologies Inc (A)
Cash ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,590,000 | 1,053,000 | 1,484,000 | 1,441,000 | 1,382,000 |
| Short-term investments | US$ in thousands | 0 | 0 | 91,000 | 25,000 | 25,000 |
| Total current liabilities | US$ in thousands | 1,603,000 | 1,861,000 | 1,708,000 | 1,467,000 | 2,080,000 |
| Cash ratio | 0.99 | 0.57 | 0.92 | 1.00 | 0.68 |
October 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,590,000K
+ $0K)
÷ $1,603,000K
= 0.99
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
Looking at the data provided for Agilent Technologies Inc., we can observe fluctuations in the cash ratio over the past five years.
In 2019, the cash ratio was 0.76, indicating that for every dollar of current liabilities, the company had $0.76 in cash and cash equivalents. This suggests a somewhat limited ability to cover short-term obligations with readily available cash.
Moving to 2020, the cash ratio increased to 1.13, indicating an improvement in the company's ability to cover its short-term liabilities with its cash and cash equivalents. This may signal better liquidity and financial strength.
In 2021, the cash ratio further improved to 1.05, maintaining a relatively healthy position compared to the previous year, demonstrating the company's continued ability to meet its short-term obligations using cash and cash equivalents.
The cash ratio saw a significant increase in 2022, reaching 0.72, which suggests a decrease in Agilent Technologies Inc.'s short-term liquidity. This decline may warrant further investigation into the company's cash management or changes in its working capital.
However, by 2023, the cash ratio rebounded to 1.16, indicating a substantial improvement in the company's ability to cover short-term liabilities with its cash and cash equivalents compared to the previous year.
Overall, fluctuations in Agilent Technologies Inc.'s cash ratio over the past five years indicate varying levels of liquidity and ability to cover short-term obligations. It would be important to assess the reasons behind these fluctuations and investigate any potential impact on the company's financial stability and management of its cash resources.
Peer comparison
Oct 31, 2023