Astec Industries Inc (ASTE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 63,200 | 66,000 | 134,400 | 158,600 | 48,900 |
| Short-term investments | US$ in thousands | 5,700 | 3,900 | 8,600 | 22,300 | 19,198 |
| Total current liabilities | US$ in thousands | 299,000 | 274,000 | 223,300 | 170,300 | 172,800 |
| Cash ratio | 0.23 | 0.26 | 0.64 | 1.06 | 0.39 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($63,200K
+ $5,700K)
÷ $299,000K
= 0.23
The cash ratio of Astec Industries Inc. has exhibited fluctuations over the past five years. The ratio has decreased from 1.11 in 2020 to 0.37 in 2023. This indicates that in 2023, Astec Industries Inc. had $0.37 in cash and cash equivalents available for every dollar of current liabilities.
A declining trend in the cash ratio could suggest potential liquidity challenges or a decrease in the company's ability to meet short-term obligations solely with cash on hand. This downward trend may raise concerns about the company's liquidity position and its ability to cover immediate financial obligations.
It is important to further investigate the reasons behind the decrease in the cash ratio over the years and assess whether the company's current cash management practices are adequate to maintain liquidity levels and meet short-term obligations efficiently. Additionally, comparing the cash ratio with industry benchmarks and peer companies can provide further insights into Astec Industries Inc.'s liquidity position relative to its competitors.
Peer comparison
Dec 31, 2023