ArcBest Corp (ARCB)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	262,226	158,264	76,620	303,954	201,909
Short-term investments	US$ in thousands	67,842	167,662	48,339	65,408	116,579
Total current liabilities	US$ in thousands	701,563	768,470	702,694	506,547	444,277
Cash ratio		0.47	0.42	0.18	0.73	0.72

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($262,226K + $67,842K) ÷ $701,563K
= 0.47

The cash ratio of ArcBest Corp has fluctuated over the past five years. The ratio measures the company's ability to cover its short-term liabilities solely with its cash and cash equivalents.

In 2023, the cash ratio was 0.57, indicating that ArcBest had $0.57 in cash and cash equivalents for every dollar of its short-term liabilities. This suggests a relatively healthy liquidity position, albeit slightly lower than the previous year's ratio of 0.52.

The significant increase in the cash ratio from 0.26 in 2021 to 0.83 in 2020 reflects a substantial improvement in the company's ability to meet its short-term obligations with available cash. However, the ratio dipped slightly to 0.82 in 2019.

Overall, ArcBest Corp's cash ratio has shown variability over the years, with the 2023 ratio suggesting a moderately strong liquidity position. It is essential for the company to closely monitor its cash reserves to ensure it can continue to meet its short-term liabilities effectively.