Adient PLC (ADNT)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 945,000 | 1,110,000 | 947,000 | 1,521,000 | 1,692,000 |
| Short-term investments | US$ in thousands | — | — | — | 335,000 | — |
| Total current liabilities | US$ in thousands | 3,678,000 | 3,738,000 | 3,501,000 | 3,511,000 | 3,819,000 |
| Cash ratio | 0.26 | 0.30 | 0.27 | 0.53 | 0.44 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($945,000K
+ $—K)
÷ $3,678,000K
= 0.26
The cash ratio of Adient PLC has shown fluctuations over the past five years. In 2024, the cash ratio stands at 0.26, a decrease from the previous year's ratio of 0.30. This indicates that the company has $0.26 in cash and cash equivalents for every $1 of current liabilities in 2024.
Comparing to 2023, the decrease in the cash ratio suggests a potential decline in the company's liquidity position for the current year. However, it is still higher than the cash ratio in 2022, which was 0.27.
The significant increase in the cash ratio in 2021, standing at 0.53, indicates a strong liquidity position during that year. This could suggest that Adient PLC had ample cash reserves to cover its short-term obligations in 2021.
In 2020, the cash ratio was 0.44, which was lower than the peak in 2021 but still relatively healthy, indicating that the company had a solid liquidity position in the previous year.
Overall, while the cash ratio has fluctuated over the last five years, it appears that Adient PLC maintained a relatively stable liquidity position, providing a mixed picture of its ability to cover short-term obligations with its cash reserves.
Peer comparison
Sep 30, 2024