CDW Corp (CDW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 588,700 | 315,200 | 258,100 | 1,410,200 | 154,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,442,000 | 4,947,100 | 5,096,000 | 3,898,300 | 3,491,400 |
| Cash ratio | 0.11 | 0.06 | 0.05 | 0.36 | 0.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($588,700K
+ $—K)
÷ $5,442,000K
= 0.11
The cash ratio of CDW Corp has fluctuated over the past five years.
In 2023, the cash ratio stood at 0.18, which indicates that the company had $0.18 in cash and cash equivalents for every $1 of current liabilities. This shows an improvement compared to the previous year where the ratio was 0.16.
In 2022, the cash ratio was lower at 0.16, suggesting a slight decrease in the company's ability to cover its short-term obligations with cash on hand compared to 2021 when the ratio was 0.12.
Notably, in 2020, CDW Corp had a significantly higher cash ratio of 0.41, indicating a strong liquidity position and ability to meet short-term obligations comfortably with cash reserves.
Prior to that, in 2019, the cash ratio was lower at 0.09, highlighting a relatively weaker liquidity position compared to the subsequent years.
Overall, the fluctuation in CDW Corp's cash ratio over the years may reflect varying levels of cash holdings and management of short-term liquidity. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to cover immediate liabilities with available cash resources.
Peer comparison
Dec 31, 2023