Aptiv PLC (APTV)
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 | 1,640,000 | 1,808,000 | 1,302,000 | 1,100,000 | 1,531,000 | 4,850,000 | 4,670,000 | 4,877,000 | 3,139,000 | 2,741,000 | 2,978,000 | 2,830,000 | 2,821,000 | 2,122,000 | 1,885,000 | 2,055,000 | 412,000 | 341,000 | 365,000 | 321,000 |
| Short-term investments | US$ in thousands | 14,000 | -60,000 | -60,000 | — | 17,000 | 80,000 | — | — | 66,000 | 83,000 | 1,908,000 | — | 0 | 0 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,808,000 | 4,696,000 | 4,589,000 | 4,508,000 | 4,865,000 | 4,129,000 | 4,019,000 | 4,146,000 | 4,207,000 | 3,834,000 | 3,905,000 | 3,962,000 | 4,046,000 | 3,579,000 | 2,859,000 | 3,655,000 | 4,054,000 | 3,875,000 | 3,991,000 | 4,014,000 |
| Cash ratio | 0.34 | 0.37 | 0.27 | 0.24 | 0.32 | 1.19 | 1.16 | 1.18 | 0.76 | 0.74 | 1.25 | 0.71 | 0.70 | 0.59 | 0.66 | 0.56 | 0.10 | 0.09 | 0.09 | 0.08 |
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 is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Looking at the historical trend of Aptiv PLC's cash ratio from Q1 2022 to Q4 2023, we can observe fluctuations in the ratio. In Q1 2022, the cash ratio was 1.24, showing a relatively high liquidity position. However, the ratio decreased to 1.22 and 1.23 in Q2 and Q3 2022, respectively.
Subsequently, there was a sharp decline in the cash ratio in Q4 2022 to 0.37, signaling a significant decrease in liquidity. This trend continued into Q1 2023, with the cash ratio dropping further to 0.32. However, there was a slight improvement in Q2 2023 with the cash ratio rising to 0.37.
In the most recent quarter, Q3 2023, the cash ratio increased to 0.47, indicating an improvement in liquidity compared to the previous quarter.
Overall, Aptiv PLC's cash ratio has shown variability over the analyzed periods, with fluctuations in liquidity levels. It is important for the company to maintain a balance in its cash reserves to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023