ArcBest Corp (ARCB)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	127,444	262,226	158,264	76,620	303,954
Short-term investments	US$ in thousands	29,759	67,842	167,662	48,339	65,408
Total current liabilities	US$ in thousands	665,985	701,563	768,470	702,694	506,547
Cash ratio		0.24	0.47	0.42	0.18	0.73

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($127,444K + $29,759K) ÷ $665,985K
= 0.24

The cash ratio of ArcBest Corp has shown fluctuations over the past five years. As of December 31, 2020, the cash ratio stood at 0.73, indicating that the company had $0.73 in cash and cash equivalents for every dollar of current liabilities, reflecting strong liquidity. However, by the end of 2021, the cash ratio had significantly decreased to 0.18, suggesting a decline in the company's ability to cover its short-term liabilities with its available cash resources.

Subsequently, as of December 31, 2022, the cash ratio improved to 0.42, showing a partial recovery in liquidity. This trend continued in 2023, with the cash ratio further increasing to 0.47, indicating a stronger ability to meet short-term obligations with cash on hand. However, by the end of 2024, the cash ratio reverted back to 0.24, signaling a slight decline in liquidity compared to the previous year.

Overall, ArcBest Corp's cash ratio has exhibited variability, indicating the company's changing ability to fulfill immediate financial obligations using its cash reserves. It is essential for stakeholders to monitor this metric closely to assess the company's liquidity position and its capacity to withstand unforeseen financial challenges.