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.
Peer comparison
Dec 31, 2023