PC Connection Inc (CNXN)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 144,954 | 240,509 | 243,983 | 134,810 | 122,930 | 116,190 | 94,896 | 67,409 | 108,310 | 89,728 | 115,665 | 92,257 | 95,655 | 108,051 | 165,943 | 111,323 | 90,060 | 98,489 | 69,739 | 93,470 |
| Short-term investments | US$ in thousands | 152,232 | 48,894 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 327,965 | 339,963 | 347,305 | 318,309 | 310,517 | 352,920 | 366,883 | 369,803 | 374,632 | 293,348 | 330,494 | 274,944 | 342,260 | 338,360 | 308,207 | 277,309 | 308,923 | 257,470 | 321,235 | 258,881 |
| Cash ratio | 0.91 | 0.85 | 0.70 | 0.42 | 0.40 | 0.33 | 0.26 | 0.18 | 0.29 | 0.31 | 0.35 | 0.34 | 0.28 | 0.32 | 0.54 | 0.40 | 0.29 | 0.38 | 0.22 | 0.36 |
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 consistent improvement over the past year, indicating a strengthening liquidity position.
In Q4 2023, the cash ratio reached 0.96, the highest level in the table. This means that the company had $0.96 in cash and cash equivalents for every $1 of current liabilities. This high cash ratio suggests that PC Connection, Inc. has a strong ability to cover its short-term obligations with its available cash resources.
Compared to Q1 2023 where the cash ratio was 0.48, the company has more than doubled its liquidity position by Q4 2023. This significant improvement in liquidity indicates better management of cash resources or possibly an increase in cash holdings.
Furthermore, when looking at the trend from Q1 2022 to Q4 2023, we can see a consistent upward trajectory in the cash ratio, showcasing the company's efforts in enhancing its liquidity position over time.
Overall, the increasing trend in PC Connection, Inc.'s cash ratio suggests that the company has been effective in managing its cash resources, which is essential for meeting its short-term obligations and potential investment opportunities.
Peer comparison
Dec 31, 2023