Brinks Company (BCO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,395,300 | 1,176,600 | 972,000 | 710,300 | 620,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,898,400 | 1,944,100 | 1,315,900 | 1,088,500 | 985,200 |
| Cash ratio | 0.73 | 0.61 | 0.74 | 0.65 | 0.63 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,395,300K
+ $—K)
÷ $1,898,400K
= 0.73
The cash ratio of Brinks Company has shown fluctuations over the past five years, ranging from 0.61 to 0.74. The cash ratio measures the company's ability to cover its short-term obligations using its cash and cash equivalents. An increasing trend in the cash ratio indicates that Brinks Company has been improving its liquidity position over the years. However, the ratio dipped in 2023 compared to the previous year before bouncing back in 2024. Generally, a cash ratio above 1 is considered favorable as it suggests that the company has enough cash on hand to meet its short-term debts. Brinks Company's cash ratio hovering between 0.61 and 0.74 implies that while the company has some cash on hand, it may need to rely on other sources of liquidity to meet its short-term obligations consistently.
Peer comparison
Dec 31, 2024