Smith AO Corporation (AOS)
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 | 339,900 | 281,000 | 378,900 | 406,200 | 391,200 | 358,800 | 359,400 | 405,800 | 443,300 | 486,100 | 444,800 | 578,500 | 573,100 | 377,900 | 442,700 | 416,100 | 374,000 | 219,400 | 281,600 | 337,800 |
| Short-term investments | US$ in thousands | 23,500 | 60,800 | 30,800 | 89,800 | 90,600 | 58,300 | 100,000 | 173,600 | 188,100 | 199,100 | 137,100 | 87,000 | 116,500 | 131,100 | 126,000 | 135,600 | 177,400 | 294,400 | 296,200 | 295,500 |
| Total current liabilities | US$ in thousands | 945,300 | 895,600 | 860,700 | 895,700 | 934,200 | 900,900 | 928,300 | 1,002,100 | 1,118,800 | 982,600 | 907,000 | 836,100 | 886,300 | 805,900 | 735,400 | 699,100 | 766,500 | 730,400 | 730,600 | 737,200 |
| Cash ratio | 0.38 | 0.38 | 0.48 | 0.55 | 0.52 | 0.46 | 0.49 | 0.58 | 0.56 | 0.70 | 0.64 | 0.80 | 0.78 | 0.63 | 0.77 | 0.79 | 0.72 | 0.70 | 0.79 | 0.86 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($339,900K
+ $23,500K)
÷ $945,300K
= 0.38
The cash ratio of A.O. Smith Corp. has shown a varying trend over the past eight quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has ranged from 0.43 to 0.62 during this period.
In Q1 2023, the cash ratio was at its highest level of 0.62, indicating that the company had a higher proportion of cash and cash equivalents relative to its current liabilities. As the ratio decreased to 0.54 in Q2 2023 and further to 0.44 in Q3 2023, it suggests that the company's liquidity position weakened slightly during these quarters.
However, the cash ratio improved in Q4 2023 to 0.43, although it remained below the levels seen in the earlier quarters of 2023. Compared to the same quarter in the previous year (Q4 2022), the cash ratio has shown a slight decrease from 0.57 to 0.43.
Overall, while the company's cash ratio has fluctuated over the past year, it is essential to monitor this ratio over time to assess the company's liquidity position and its ability to meet its short-term obligations using its available cash resources.
Peer comparison
Dec 31, 2023