Brinks Company (BCO)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,176,600	972,000	710,300	620,900	311,000
Short-term investments	US$ in thousands	—	—	—	—	200
Total current liabilities	US$ in thousands	1,944,100	1,674,800	1,429,000	1,336,200	1,002,000
Cash ratio		0.61	0.58	0.50	0.46	0.31

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,176,600K + $—K) ÷ $1,944,100K
= 0.61

The cash ratio of Brink`s Co. has shown a positive trend over the past five years, increasing from 0.41 in 2019 to 0.76 in 2023. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates that the company has a stronger ability to meet its short-term obligations without relying on external sources of funding.

Brink`s Co.'s consistent improvement in the cash ratio suggests that the company has been effectively managing its cash resources over the years. This trend indicates a growing liquidity position, which can provide a cushion in times of financial distress or investment opportunities.

Overall, the increasing cash ratio for Brink`s Co. reflects a positive liquidity position and a prudent approach to managing its short-term financial obligations.