Autoliv Inc (ALV)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 498,000 | 594,000 | 969,000 | 1,178,000 | 444,700 |
| Short-term investments | US$ in thousands | — | -1,000 | -470,000 | 200 | — |
| Total current liabilities | US$ in thousands | 4,035,000 | 3,642,000 | 2,821,000 | 3,147,000 | 2,410,200 |
| Cash ratio | 0.12 | 0.16 | 0.18 | 0.37 | 0.18 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($498,000K
+ $—K)
÷ $4,035,000K
= 0.12
Autoliv Inc.'s cash ratio has exhibited fluctuations over the past five years. The cash ratio decreased from 0.25 in 2019 to 0.17 in 2023, indicating a decline in the company's ability to cover its short-term liabilities with cash and cash equivalents. This downward trend suggests that Autoliv may have experienced challenges in maintaining sufficient liquid assets to meet its immediate financial obligations. It is essential for the company to closely monitor its cash position and liquidity management strategies to ensure financial stability and operational continuity in the future.
Peer comparison
Dec 31, 2023