Archrock Inc (AROC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,420 | 1,338 | 1,566 | 1,569 | 1,097 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 188,604 | 152,143 | 148,571 | 125,254 | 111,692 |
| Cash ratio | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,420K
+ $—K)
÷ $188,604K
= 0.02
The cash ratio of Archrock Inc has remained relatively stable over the past five years, hovering around 0.01 to 0.02. This indicates that the company has a limited amount of cash and cash equivalents relative to its current liabilities. A cash ratio of 0.01 to 0.02 suggests that Archrock Inc may have difficulty in meeting its short-term obligations using only its available cash on hand, as it has a weak liquidity position. It is important for the company to closely monitor and manage its cash reserves to ensure it can cover its immediate financial commitments efficiently.
Peer comparison
Dec 31, 2024