Crane NXT Co (CXT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 227,200 | 230,700 | 478,600 | 551,000 | 393,900 |
| Short-term investments | US$ in thousands | — | 426,900 | — | — | — |
| Total current liabilities | US$ in thousands | 334,400 | 631,400 | 789,300 | 1,056,600 | 916,700 |
| Cash ratio | 0.68 | 1.04 | 0.61 | 0.52 | 0.43 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($227,200K
+ $—K)
÷ $334,400K
= 0.68
The cash ratio of Crane NXT Co has fluctuated over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In 2023, Crane NXT Co has a cash ratio of 0.68, indicating that it has $0.68 of cash and cash equivalents for every $1 of short-term liabilities. This represents a decrease from the previous year's ratio of 1.04, suggesting that the company may have less available cash relative to its short-term obligations.
Comparing the current ratio to the ratios in the earlier years, Crane NXT Co's cash ratio has shown improvement since 2019 when it was 0.43. However, it is lower than the ratio in 2022 when it was 1.04.
It is important to note that while a higher cash ratio is generally preferred as it indicates a stronger ability to cover short-term liabilities with cash, a very high cash ratio may also imply that the company is not efficiently deploying its cash resources. Further analysis of the company's cash management practices and liquidity position would be necessary to fully understand the implications of the cash ratio fluctuations.
Peer comparison
Dec 31, 2023