Aptiv PLC (APTV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,573,000 | 1,640,000 | 1,531,000 | 3,139,000 | 2,821,000 |
| Short-term investments | US$ in thousands | 11,000 | 0 | 17,000 | 66,000 | 0 |
| Total current liabilities | US$ in thousands | 5,131,000 | 4,808,000 | 4,865,000 | 4,207,000 | 4,046,000 |
| Cash ratio | 0.31 | 0.34 | 0.32 | 0.76 | 0.70 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,573,000K
+ $11,000K)
÷ $5,131,000K
= 0.31
The cash ratio for Aptiv PLC has shown fluctuating trends over the past five years. Starting at 0.70 on December 31, 2020, the ratio increased to 0.76 by December 31, 2021, indicating an improvement in the company's ability to cover its short-term liabilities with cash and cash equivalents. However, there was a significant decrease in the ratio to 0.32 by December 31, 2022, raising concerns about the company's liquidity position.
Although the cash ratio slightly rebounded to 0.34 by December 31, 2023, it remained below the levels seen in the earlier years. By December 31, 2024, the cash ratio further declined to 0.31, indicating a continued challenge in Aptiv's ability to meet its short-term obligations solely with its available cash reserves.
Overall, the downward trend in Aptiv's cash ratio suggests a potential liquidity risk that the company may need to address to ensure its financial stability and ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024