The Andersons Inc (ANDE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 561,771 | 643,854 | 115,269 | 216,444 | 29,123 |
| Short-term investments | US$ in thousands | — | 9,968 | 8,759 | — | — |
| Total current liabilities | US$ in thousands | 1,731,170 | 1,636,330 | 2,521,320 | 2,463,930 | 1,931,680 |
| Cash ratio | 0.32 | 0.40 | 0.05 | 0.09 | 0.02 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($561,771K
+ $—K)
÷ $1,731,170K
= 0.32
The cash ratio of The Andersons Inc has shown fluctuations over the past five years.
As of December 31, 2020, the company's cash ratio was 0.02, indicating that only 2% of its current liabilities could be covered by its cash reserves. This ratio suggests a relatively low level of liquidity at that time.
By December 31, 2021, the cash ratio had improved significantly to 0.09, suggesting that the company had a higher proportion of cash available to cover its short-term obligations. This increase in ratio indicates a better liquidity position compared to the previous year.
However, by December 31, 2022, the cash ratio declined to 0.05, indicating a decrease in the proportion of cash available to cover current liabilities. This may raise concerns about the company's ability to meet its short-term obligations using its cash reserves.
On December 31, 2023, The Andersons Inc experienced a significant improvement in its cash ratio, which stood at 0.40. This indicates a substantial increase in liquidity, with a more significant portion of current liabilities covered by cash reserves.
In the most recent year, December 31, 2024, the cash ratio decreased slightly to 0.32, implying that the company still had a relatively strong liquidity position, although slightly lower than the previous year.
Overall, the fluctuation in The Andersons Inc's cash ratio over the five years indicates varying levels of liquidity and the ability of the company to meet its short-term obligations using its cash reserves. Investors and stakeholders may want to monitor these fluctuations to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2024