Benchmark Electronics Inc (BHE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 315,152 | 277,391 | 207,430 | 271,749 | 390,808 |
| Short-term investments | US$ in thousands | — | — | 639 | — | — |
| Total current liabilities | US$ in thousands | 649,099 | 713,547 | 749,136 | 654,382 | 481,136 |
| Cash ratio | 0.49 | 0.39 | 0.28 | 0.42 | 0.81 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($315,152K
+ $—K)
÷ $649,099K
= 0.49
The cash ratio of Benchmark Electronics Inc has shown fluctuations over the past five years, with a decreasing trend overall. As of December 31, 2020, the cash ratio was 0.81, indicating that the company had $0.81 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the ratio had declined to 0.42, suggesting a decrease in the company's ability to cover its short-term obligations solely with cash on hand.
The cash ratio decreased further to 0.28 by December 31, 2022, signaling a potential liquidity challenge for Benchmark Electronics Inc. There was a slight improvement in the ratio to 0.39 by December 31, 2023, but it remained below the initial level in 2020. By the end of December 31, 2024, the cash ratio had increased to 0.49, indicating a moderate recovery in the company's ability to meet its short-term liabilities with available cash.
Overall, the declining trend in the cash ratio of Benchmark Electronics Inc from 2020 to 2022 reflects a potential liquidity strain during those years. The subsequent improvements in 2023 and 2024 suggest some progress in enhancing the company's liquidity position, but it may still be prudent for the company to closely monitor and manage its cash reserves to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024