Belden Inc (BDC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 370,302 | 597,044 | 687,676 | 641,563 | 500,666 |
| Short-term investments | US$ in thousands | — | — | — | 2,194 | 1,328 |
| Total current liabilities | US$ in thousands | 622,704 | 633,504 | 639,919 | 752,866 | 520,761 |
| Cash ratio | 0.59 | 0.94 | 1.07 | 0.86 | 0.96 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($370,302K
+ $—K)
÷ $622,704K
= 0.59
The cash ratio of Belden Inc has fluctuated over the past five years. In analyzing the trend, we observe a decrease from 0.96 as of December 31, 2020, to 0.86 as of December 31, 2021. There was a significant improvement in the cash ratio to 1.07 as of December 31, 2022, indicating a stronger ability to cover short-term liabilities with available cash. However, the ratio declined again to 0.94 by December 31, 2023, before experiencing a substantial drop to 0.59 by December 31, 2024.
The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents. A higher ratio suggests a stronger liquidity position, while a lower ratio may indicate potential difficulty in meeting short-term obligations. Belden Inc's decreasing cash ratio over the last two years could raise concerns about its liquidity management and ability to meet short-term financial commitments. Further analysis of the company's cash position and cash flow management may be necessary to understand the reasons behind the fluctuating cash ratio and assess the company's overall financial health.
Peer comparison
Dec 31, 2024