Clean Harbors Inc (CLH)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 444,698 | 492,603 | 452,575 | 519,101 | 371,991 |
| Short-term investments | US$ in thousands | 106,101 | 62,033 | 81,724 | 51,857 | 42,421 |
| Total current liabilities | US$ in thousands | 1,037,540 | 1,020,090 | 925,314 | 636,145 | 720,100 |
| Cash ratio | 0.53 | 0.54 | 0.58 | 0.90 | 0.58 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($444,698K
+ $106,101K)
÷ $1,037,540K
= 0.53
The cash ratio of Clean Harbors, Inc. has exhibited a decreasing trend over the past five years. As of December 31, 2023, the cash ratio stands at 0.61, indicating that for every dollar of current liabilities, the company has $0.61 in cash or cash equivalents available to cover those obligations.
The decreasing trend in the cash ratio can be concerning as it suggests a potential weakening liquidity position for Clean Harbors, Inc. A lower cash ratio may indicate that the company is becoming less capable of meeting its short-term financial obligations solely from its cash reserves.
It is important for stakeholders to monitor the company's cash ratio closely, as a decreasing trend could signal a need for improved cash management practices or a potential risk to the company's short-term solvency.
Peer comparison
Dec 31, 2023