Smith AO Corporation (AOS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 239,600 | 339,900 | 391,200 | 443,300 | 573,100 |
| Short-term investments | US$ in thousands | 36,500 | 23,500 | 90,600 | 188,100 | 116,500 |
| Total current liabilities | US$ in thousands | 897,200 | 945,300 | 934,200 | 1,118,800 | 886,300 |
| Cash ratio | 0.31 | 0.38 | 0.52 | 0.56 | 0.78 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($239,600K
+ $36,500K)
÷ $897,200K
= 0.31
The cash ratio of Smith AO Corporation has shown a declining trend over the past five years, decreasing from 0.78 as of December 31, 2020, to 0.31 as of December 31, 2024. This indicates that the company may have limited cash reserves relative to its current liabilities. A lower cash ratio could potentially signal liquidity concerns or difficulties in meeting short-term obligations with available cash on hand. It is essential for the company to monitor its cash position closely and consider strategies to improve liquidity management to ensure financial stability amidst changing business conditions.
Peer comparison
Dec 31, 2024