Aptiv PLC (APTV)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,640,000 | 1,531,000 | 3,139,000 | 2,821,000 | 412,000 |
| Short-term investments | US$ in thousands | 14,000 | 17,000 | 66,000 | 0 | — |
| Total current liabilities | US$ in thousands | 4,808,000 | 4,865,000 | 4,207,000 | 4,046,000 | 4,054,000 |
| Cash ratio | 0.34 | 0.32 | 0.76 | 0.70 | 0.10 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,640,000K
+ $14,000K)
÷ $4,808,000K
= 0.34
The cash ratio of Aptiv PLC has displayed fluctuations over the past five years. In 2023, the cash ratio stands at 0.43, indicating that the company has $0.43 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement from the previous year's ratio of 0.37, suggesting a stronger liquidity position in the most recent period.
Comparing with historical data, the cash ratio was notably higher in 2021 at 0.81 and 2020 at 0.77. This indicates that Aptiv had a larger proportion of cash and cash equivalents relative to its current liabilities in those years, reflecting a more conservative liquidity stance. In contrast, the cash ratio was significantly lower in 2019 at 0.16, signaling a weaker liquidity position at that time.
Overall, the trend in Aptiv's cash ratio underscores the company's ability to meet its short-term obligations with available cash and cash equivalents. The recent uptick in the cash ratio suggests an improved liquidity position in 2023 compared to the prior year, potentially enhancing the company's financial flexibility and resilience to short-term challenges.
Peer comparison
Dec 31, 2023