AdvanSix Inc (ASIX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 29,768 | 30,985 | 15,100 | 10,606 | 7,050 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 358,918 | 393,492 | 309,822 | 287,037 | 291,726 |
| Cash ratio | 0.08 | 0.08 | 0.05 | 0.04 | 0.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($29,768K
+ $—K)
÷ $358,918K
= 0.08
The cash ratio of AdvanSix Inc has shown a consistent upward trend over the past five years. The ratio has increased steadily from 0.04 in December 2019 to 0.11 in December 2023. This indicates that the company's ability to cover its short-term liabilities with its cash holdings has improved significantly over the years. A higher cash ratio suggests that the company is in a better position to meet its immediate financial obligations without relying heavily on external financing or liquidating other assets. The steady improvement in the cash ratio reflects positively on the liquidity and financial health of AdvanSix Inc.
Peer comparison
Dec 31, 2023