BWX Technologies Inc (BWXT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 75,766 | 35,244 | 33,891 | 42,610 | 86,540 |
| Short-term investments | US$ in thousands | 0 | 3,804 | 3,811 | 3,707 | 5,843 |
| Total current liabilities | US$ in thousands | 375,046 | 367,860 | 459,615 | 529,727 | 404,709 |
| Cash ratio | 0.20 | 0.11 | 0.08 | 0.09 | 0.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($75,766K
+ $0K)
÷ $375,046K
= 0.20
The cash ratio measures a company's ability to cover its short-term liabilities using its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations with cash on hand.
Analyzing BWX Technologies Inc's cash ratio over the last five years, we observe an increasing trend from 1.26 in 2019 to 1.80 in 2023. This indicates that the company has been holding more cash relative to its short-term liabilities over the years.
In 2020, the cash ratio was at 1.02, which was the lowest value in the period analyzed. However, there was a significant improvement in the following years, reaching the highest point in 2023.
BWX Technologies Inc's consistently increasing cash ratio suggests a strong liquidity position and improved ability to cover short-term obligations using available cash reserves. This trend indicates a positive financial health in terms of liquidity management over the years.
Peer comparison
Dec 31, 2023