PC Connection Inc (CNXN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 178,318 | 144,954 | 122,930 | 108,310 | 95,655 |
| Short-term investments | US$ in thousands | 264,295 | 152,232 | — | — | — |
| Total current liabilities | US$ in thousands | 371,205 | 327,965 | 310,517 | 374,632 | 342,260 |
| Cash ratio | 1.19 | 0.91 | 0.40 | 0.29 | 0.28 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($178,318K
+ $264,295K)
÷ $371,205K
= 1.19
The cash ratio of PC Connection Inc has shown a positive trend over the years, increasing from 0.28 in December 2020 to 1.19 in December 2024. This indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents has improved significantly. The ratio surpassed 1 in December 2023, suggesting that the company had more than enough cash to cover its current liabilities at that point in time. Overall, the increasing trend in the cash ratio demonstrates an improved liquidity position for PC Connection Inc, enhancing its ability to meet its short-term obligations using readily available cash resources.
Peer comparison
Dec 31, 2024