Aecom Technology Corporation (ACM)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,260,210 | 1,172,210 | 1,229,200 | 1,708,330 | 885,639 |
| Short-term investments | US$ in thousands | — | 9,400 | — | 229,312 | 194,715 |
| Total current liabilities | US$ in thousands | 5,850,280 | 5,404,170 | 5,521,720 | 6,090,450 | 6,461,750 |
| Cash ratio | 0.22 | 0.22 | 0.22 | 0.32 | 0.17 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,260,210K
+ $—K)
÷ $5,850,280K
= 0.22
The cash ratio of AECOM has exhibited a slight downward trend over the past five years, decreasing from 0.64 in 2020 to 0.60 in 2023. This ratio indicates the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. While the decrease in the cash ratio may raise concerns about the company's liquidity position, it is important to note that the ratio remains above 0.50, suggesting that AECOM has maintained a relatively healthy level of cash reserves compared to its short-term obligations. Further analysis of the company's cash management practices and overall liquidity position would provide a more comprehensive understanding of its financial health.
Peer comparison
Sep 30, 2023