Arcosa Inc (ACA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 104,800 | 160,400 | 72,900 | 95,800 | 240,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 431,200 | 367,700 | 364,000 | 310,300 | 284,000 |
| Cash ratio | 0.24 | 0.44 | 0.20 | 0.31 | 0.85 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($104,800K
+ $—K)
÷ $431,200K
= 0.24
The cash ratio of Arcosa Inc has exhibited fluctuations over the years. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio implies a stronger ability to meet short-term obligations using liquid assets.
In 2019, Arcosa Inc had a notably high cash ratio of 0.96, suggesting a robust liquidity position to cover its short-term liabilities. However, the cash ratio declined in subsequent years to 0.41 in 2020, 0.36 in 2021, and further dropped to 0.36 in 2023, indicating a decreased ability to cover short-term obligations solely with cash and cash equivalents.
The decline in the cash ratio could be due to various reasons, such as increased spending on investments or operations, which impacted the company's liquid assets. It is essential for Arcosa Inc to monitor its cash management effectively to ensure it maintains an adequate level of liquidity to meet its short-term obligations in the future.
Peer comparison
Dec 31, 2023