Advanced Energy Industries Inc (AEIS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,044,560 | 458,818 | 544,372 | 480,368 | 346,441 |
| Short-term investments | US$ in thousands | 163 | 2,128 | 2,296 | 2,654 | 2,614 |
| Total current liabilities | US$ in thousands | 335,848 | 393,043 | 370,196 | 296,397 | 320,332 |
| Cash ratio | 3.11 | 1.17 | 1.48 | 1.63 | 1.09 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,044,560K
+ $163K)
÷ $335,848K
= 3.11
The cash ratio, a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, for Advanced Energy Industries Inc., has shown positive variability over the past five years.
As of December 31, 2023, the cash ratio stood at 3.26, significantly higher than the ratios in the previous years, indicating a strong ability to cover its short-term obligations solely with its cash holdings. This substantial increase in the ratio from the prior year suggests improved liquidity and financial health for the company.
In contrast, the cash ratio was 1.30 as of December 31, 2022, displaying a relatively lower liquidity position compared to the most recent year. However, the company still exhibited the ability to cover its short-term liabilities with available cash, but to a lesser extent.
In the years prior to 2022, the cash ratio ranged from 1.56 in 2021 to 1.20 in 2019. These ratios, although showing fluctuations, generally indicated that the company maintained a good level of liquidity throughout these years, ensuring its ability to meet its short-term financial obligations.
Overall, the increasing trend in Advanced Energy Industries Inc.'s cash ratio highlights an improvement in its liquidity position, suggesting a strengthened ability to meet its short-term liabilities with its available cash and cash equivalents.
Peer comparison
Dec 31, 2023