Archrock Inc (AROC)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 4,420 3,749 919 1,155 1,338 482 1,193 3,051 1,566 2,042 1,950 1,262 1,569 3,488 3,312 1,933 1,097 1,476 2,205 3,221
Short-term investments US$ in thousands — — — 2,676 — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 188,604 194,661 133,192 153,246 152,143 159,375 142,097 177,101 148,571 194,330 151,529 168,310 125,254 153,423 125,550 134,733 111,692 136,324 120,079 157,145
Cash ratio 0.02 0.02 0.01 0.02 0.01 0.00 0.01 0.02 0.01 0.01 0.01 0.01 0.01 0.02 0.03 0.01 0.01 0.01 0.02 0.02

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 over the provided periods has shown some fluctuations but generally remained low. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A cash ratio of less than 1 indicates that the company does not have enough cash to cover its short-term obligations.

From March 2020 to March 2024, the cash ratio of Archrock Inc fluctuated between 0.00 and 0.03. The lowest point was observed in September 2023 with a cash ratio of 0.00, indicating a potential liquidity strain during that period. However, the company managed to improve its cash position in subsequent quarters.

Overall, the cash ratio of Archrock Inc suggests that the company may have limited liquidity and could face challenges in meeting its short-term obligations solely with its cash reserves. It is important for investors and stakeholders to closely monitor the company's cash management practices and liquidity position to ensure financial stability and sustainability.