Api Group Corp (APG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 499,000 | 479,000 | 605,000 | 1,188,000 | 515,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,885,000 | 1,807,000 | 1,921,000 | 867,000 | 841,000 |
| Cash ratio | 0.26 | 0.27 | 0.31 | 1.37 | 0.61 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($499,000K
+ $—K)
÷ $1,885,000K
= 0.26
The cash ratio of Api Group Corp has demonstrated significant fluctuations over the specified period from December 31, 2020, to December 31, 2024. At the end of 2020, the cash ratio stood at 0.61, indicating that the company's cash and cash equivalents covered approximately 61% of its current liabilities, reflecting a moderate liquidity position. By the end of 2021, the cash ratio increased substantially to 1.37, suggesting improved liquidity whereby the company possessed enough cash to cover its current liabilities more than once, indicative of a robust short-term liquidity position during that period.
However, this upward trend reversed sharply in subsequent years. By December 31, 2022, the cash ratio declined to 0.31, signaling a notable reduction in cash holdings relative to current liabilities, and implying a weakening in immediate liquidity. The decline continued into 2023, with the ratio dropping further to 0.27, and remained relatively stable in 2024 at approximately 0.26. This consistent decline suggests that while the company maintains some level of liquidity, its ability to meet short-term liabilities solely with cash or cash equivalents has diminished significantly from the peak observed in 2021.
Overall, the data indicates that Api Group Corp experienced a substantial improvement in its short-term liquidity position in 2021, followed by a marked decrease in the subsequent years. The downward trend from 2022 onward may point to increased current liabilities, reduced cash reserves, or a strategic shift in liquidity management. Consistently low cash ratios in recent years could warrant further investigation into the company's liquidity management practices and its reliance on other liquid assets beyond cash to meet short-term obligations.
Peer comparison
Dec 31, 2024