Curtiss-Wright Corporation (CW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 406,867 | 256,974 | 171,004 | 198,248 | 391,033 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 806,544 | 981,045 | 734,867 | 810,377 | 744,731 |
| Cash ratio | 0.50 | 0.26 | 0.23 | 0.24 | 0.53 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($406,867K
+ $—K)
÷ $806,544K
= 0.50
The cash ratio of Curtiss-Wright Corp. has varied over the past five years, ranging from 0.32 to 0.63. A cash ratio of 0.59 as of December 31, 2023 indicates that the company has $0.59 of cash or cash equivalents for every $1 of current liabilities. This suggests that Curtiss-Wright Corp. has improved its liquidity position compared to the previous year's ratio of 0.32, which indicates a stronger ability to cover its short-term obligations using its available cash reserves.
Although the cash ratio fluctuated in the interim years, the significant increase from 0.32 in 2022 to 0.59 in 2023 suggests that the company may have focused on building up its cash reserves or managing its current liabilities more efficiently. This improvement in liquidity can provide Curtiss-Wright Corp. with a greater buffer to handle unexpected expenses or economic downturns. However, it is essential to consider other liquidity and solvency ratios in conjunction with the cash ratio to get a more comprehensive view of the company's financial health.
Peer comparison
Dec 31, 2023