Autoliv Inc (ALV)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 498,000 | 475,000 | 475,000 | 713,000 | 594,000 | 483,000 | 327,000 | 938,000 | 969,000 | 903,000 | 893,000 | 1,254,000 | 1,178,000 | 1,476,500 | 1,223,200 | 907,200 | 444,700 | 334,400 | 406,400 | 436,600 |
| Short-term investments | US$ in thousands | — | — | — | — | -1,000 | — | — | — | -470,000 | — | — | — | 200 | — | — | — | -377,800 | — | — | — |
| Total current liabilities | US$ in thousands | 4,035,000 | 3,851,000 | 3,756,000 | 3,529,000 | 3,642,000 | 3,458,000 | 3,061,000 | 3,073,000 | 2,821,000 | 2,811,000 | 2,852,000 | 3,188,000 | 3,147,000 | 3,221,300 | 2,152,000 | 2,226,200 | 2,410,200 | 2,304,800 | 2,418,400 | 2,738,500 |
| Cash ratio | 0.12 | 0.12 | 0.13 | 0.20 | 0.16 | 0.14 | 0.11 | 0.31 | 0.18 | 0.32 | 0.31 | 0.39 | 0.37 | 0.46 | 0.57 | 0.41 | 0.03 | 0.15 | 0.17 | 0.16 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($498,000K
+ $—K)
÷ $4,035,000K
= 0.12
The cash ratio of Autoliv Inc. has fluctuated over the past eight quarters, ranging from a low of 0.17 in Q4 of 2023 to a high of 0.39 in Q1 of 2022.
A cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that a company has a stronger ability to cover its short-term obligations, while a lower ratio suggests a potential liquidity risk.
The trend in Autoliv Inc.'s cash ratio shows some volatility, with fluctuations observed in each quarter. The ratio peaked in Q1 of 2022 at 0.39, indicating a significant liquidity cushion to cover short-term liabilities. However, the ratio decreased in subsequent quarters, reaching a low of 0.17 in Q4 of 2023, which may raise concerns about the company's ability to meet its short-term obligations solely from its available cash.
Overall, while Autoliv Inc. has maintained a relatively healthy cash ratio above 0.2 in most quarters, the recent decrease to 0.17 in Q4 of 2023 suggests a potential liquidity challenge that investors and stakeholders may need to monitor closely.
Peer comparison
Dec 31, 2023