The Andersons Inc (ANDE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 643,854 | 115,269 | 216,444 | 29,123 | 54,895 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,636,330 | 2,521,320 | 2,463,930 | 1,931,680 | 1,439,920 |
| Cash ratio | 0.39 | 0.05 | 0.09 | 0.02 | 0.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($643,854K
+ $—K)
÷ $1,636,330K
= 0.39
The cash ratio of Andersons Inc. has shown a fluctuating trend over the past five years. In 2023, the cash ratio stands at 0.54, indicating that the company has $0.54 in cash and cash equivalents for every $1 of current liabilities. This represents a significant improvement from the previous year's ratio of 0.19.
The cash ratio in 2023 suggests that Andersons Inc. has a strong ability to cover its short-term obligations with its readily available cash resources. It indicates that the company's liquidity position has strengthened, potentially due to effective cash management strategies or improved operational performance.
Comparing the 2023 ratio to those of the prior years, it is evident that Andersons Inc. has been able to progressively increase its cash ratio over time. This indicates a positive trend in the company's liquidity management and ability to meet its short-term financial obligations.
Overall, the cash ratio analysis suggests that Andersons Inc. has been successful in enhancing its liquidity position and managing its cash resources effectively, which could bode well for its financial stability and ability to weather unexpected financial challenges in the future.
Peer comparison
Dec 31, 2023