Barnes Group Inc (B)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 89,827 | 76,858 | 102,860 | 79,145 | 93,805 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 396,610 | 305,073 | 310,394 | 295,379 | 342,875 |
| Cash ratio | 0.23 | 0.25 | 0.33 | 0.27 | 0.27 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($89,827K
+ $—K)
÷ $396,610K
= 0.23
The cash ratio of Barnes Group Inc. has shown fluctuations over the past five years, ranging from 0.47 to 0.57. This ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
In this case, Barnes Group Inc. experienced a peak cash ratio of 0.57 in December 2021, suggesting a relatively higher liquidity position that year. However, the ratio decreased to 0.47 in both December 2019 and December 2023, indicating a lower level of cash reserves in relation to short-term liabilities during those periods.
Overall, the cash ratio fluctuated within a relatively narrow range, indicating some stability in the company's liquidity management over the years. It would be essential for the company to maintain an adequate level of liquidity to meet its short-term obligations effectively and efficiently in the future.
Peer comparison
Dec 31, 2023