Alamo Group Inc (ALG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 197,274 | 51,919 | 47,016 | 42,115 | 50,195 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 190,309 | 213,926 | 190,506 | 192,564 | 157,295 |
| Cash ratio | 1.04 | 0.24 | 0.25 | 0.22 | 0.32 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($197,274K
+ $—K)
÷ $190,309K
= 1.04
The cash ratio of Alamo Group Inc has shown fluctuations over the past years. The ratio was 0.32 as of December 31, 2020, indicating that for every dollar of current liabilities, the company had $0.32 in cash or cash equivalents. However, the ratio decreased to 0.22 by December 31, 2021, suggesting a lower ability to cover short-term obligations with cash on hand.
In the following years, the cash ratio improved slightly to 0.25 as of December 31, 2022, and 0.24 as of December 31, 2023. This indicates a gradual strengthening of the company's liquidity position.
Notably, the cash ratio significantly increased to 1.04 by December 31, 2024, signaling a substantial improvement in the company's ability to cover its short-term liabilities with cash reserves. This sharp increase could be due to changes in the company's cash position or a reduction in current liabilities.
Overall, the trend in the cash ratio of Alamo Group Inc illustrates variations in the company's liquidity management over the years, with a notable improvement towards the end of the period analyzed.
Peer comparison
Dec 31, 2024