Alamo Group Inc (ALG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 51,919 | 47,016 | 42,115 | 50,195 | 42,311 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 213,926 | 190,506 | 192,564 | 157,295 | 162,874 |
| Cash ratio | 0.24 | 0.25 | 0.22 | 0.32 | 0.26 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($51,919K
+ $—K)
÷ $213,926K
= 0.24
The cash ratio of Alamo Group Inc. has been fluctuating over the past five years, ranging from 0.27 to 0.37. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2020, the company had a relatively high cash ratio of 0.37, indicating a strong liquidity position to meet its short-term obligations. However, this ratio decreased in the following years, reaching its lowest point at 0.27 in 2021. This suggests a potential decrease in the company's ability to cover its short-term liabilities with its available cash.
In 2022 and 2023, the cash ratio slightly improved but remained below the 2020 level. The ratio of 0.30 in 2023 indicates that Alamo Group Inc. still maintains a moderate ability to meet its short-term obligations using its cash reserves.
Overall, the trend in Alamo Group Inc.'s cash ratio shows some variability in its liquidity position over the years, with fluctuations in the company's ability to cover its short-term liabilities with its cash and cash equivalents. It would be advisable for further analysis to understand the underlying reasons for these fluctuations and assess the company's overall liquidity management strategies.
Peer comparison
Dec 31, 2023