Cable One Inc (CABO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 190,289 | 215,150 | 388,802 | 574,909 | 125,271 |
| Short-term investments | US$ in thousands | -2,228 | 25,794 | — | 807,781 | — |
| Total current liabilities | US$ in thousands | 202,837 | 244,155 | 269,075 | 221,582 | 189,542 |
| Cash ratio | 0.93 | 0.99 | 1.44 | 6.24 | 0.66 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($190,289K
+ $-2,228K)
÷ $202,837K
= 0.93
The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. Cable One Inc's cash ratios over the past five years have shown fluctuations.
In 2023, the cash ratio stood at 1.22, indicating that for every dollar of current liabilities, Cable One Inc had $1.22 in cash and cash equivalents available, reflecting a slightly improved liquidity position compared to the previous year.
In 2022, the cash ratio was 1.12, which was lower than in 2023 but still demonstrated the company's ability to meet its short-term obligations with its cash reserves.
The cash ratio was notably higher in 2021 at 1.65, suggesting the company had a stronger liquidity position compared to the previous year. This ratio decreased significantly in 2020 to 2.86, indicating a potential increase in liquidity risk or that the company may have been holding excessive cash reserves relative to its current liabilities.
The cash ratio in 2019 was the lowest in the five-year period at 0.75, pointing to potential liquidity challenges as the company may have had insufficient cash to cover its short-term obligations at that time.
Overall, Cable One Inc's cash ratio has fluctuated over the past five years, reflecting changes in its cash position relative to its short-term liabilities. It is important for the company to maintain an appropriate level of cash reserves to ensure it can meet its financial obligations as they come due.
Peer comparison
Dec 31, 2023