PC Connection Inc (CNXN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 144,954 | 122,930 | 108,310 | 95,655 | 90,060 |
| Short-term investments | US$ in thousands | 152,232 | — | — | — | — |
| Total current liabilities | US$ in thousands | 327,965 | 310,517 | 374,632 | 342,260 | 308,923 |
| Cash ratio | 0.91 | 0.40 | 0.29 | 0.28 | 0.29 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($144,954K
+ $152,232K)
÷ $327,965K
= 0.91
The cash ratio of PC Connection Inc has shown a positive trend over the past five years. The ratio has steadily increased from 0.29 in 2019 to 0.91 in 2023. This indicates that the company has a greater ability to cover its short-term liabilities with its available cash and cash equivalents. The significant improvement in the cash ratio reflects a strong liquidity position for the company, suggesting that it may be better equipped to meet its financial obligations without relying heavily on external financing or liquidating other assets. This increasing trend in the cash ratio may be a positive sign for the financial health and stability of PC Connection Inc.
Peer comparison
Dec 31, 2023