AMC Networks Inc (AMCX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 570,576 | 930,002 | 892,221 | 888,526 | 816,170 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 943,423 | 1,170,230 | 1,058,080 | 878,467 | 804,342 |
| Cash ratio | 0.60 | 0.79 | 0.84 | 1.01 | 1.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($570,576K
+ $—K)
÷ $943,423K
= 0.60
AMC Networks Inc's cash ratio has gradually decreased over the past five years. The cash ratio provides insight into the company's ability to cover its short-term liabilities with its current cash and cash equivalents.
The cash ratio was 1.02 in 2023, indicating the company had $1.02 of cash and cash equivalents for every $1 of current liabilities. This suggests a slightly lower liquidity position compared to the previous year's ratio of 1.05. The decreasing trend in the cash ratio could potentially raise concerns about the company's ability to manage its short-term obligations using its available cash resources.
Although the cash ratio has declined over the years, it is still above 1, which indicates that the company has sufficient cash to cover its short-term liabilities. However, investors and analysts may need to monitor this trend closely to ensure that AMC Networks Inc maintains a healthy liquidity position in the future.
Peer comparison
Dec 31, 2023