Astec Industries Inc (ASTE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 88,300 | 63,200 | 66,000 | 134,400 | 158,600 |
| Short-term investments | US$ in thousands | 2,500 | 5,700 | 3,900 | 8,600 | 4,300 |
| Total current liabilities | US$ in thousands | 271,700 | 299,000 | 274,000 | 225,300 | 170,300 |
| Cash ratio | 0.33 | 0.23 | 0.26 | 0.63 | 0.96 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($88,300K
+ $2,500K)
÷ $271,700K
= 0.33
The cash ratio of Astec Industries Inc has shown a declining trend over the past five years. As of December 31, 2020, the cash ratio was 0.96, indicating that the company had $0.96 in cash and cash equivalents for every $1 of current liabilities, reflecting a strong liquidity position.
However, the cash ratio decreased to 0.63 by December 31, 2021, and continued to decline further to 0.26 by December 31, 2022. This significant decrease suggests that Astec Industries Inc may be facing challenges in managing its short-term obligations with available cash resources.
By December 31, 2023, the cash ratio dropped to 0.23, indicating a further deterioration in the company's ability to cover its current liabilities with cash on hand. The situation improved slightly by December 31, 2024, with a cash ratio of 0.33, but it still remains relatively low compared to historical levels.
This declining trend in the cash ratio raises concerns about Astec Industries Inc's liquidity position and ability to meet its short-term financial obligations. It may be important for the company to closely monitor its cash management practices and consider strategies to improve liquidity in order to ensure financial stability in the future.
Peer comparison
Dec 31, 2024