Dana Inc (DAN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 494,000 | 529,000 | 425,000 | 268,000 | 559,000 |
| Short-term investments | US$ in thousands | — | — | 17,000 | 17,000 | 21,000 |
| Total current liabilities | US$ in thousands | 1,782,000 | 2,602,000 | 2,479,000 | 2,174,000 | 1,941,000 |
| Cash ratio | 0.28 | 0.20 | 0.18 | 0.13 | 0.30 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($494,000K
+ $—K)
÷ $1,782,000K
= 0.28
The cash ratio of Dana Inc has fluctuated over the past five years. As of December 31, 2020, the cash ratio was 0.30, indicating that the company had $0.30 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the cash ratio had decreased to 0.13, suggesting a potential liquidity concern as the company had reduced its cash reserves relative to its short-term obligations.
Subsequently, there was a slight improvement in the cash ratio to 0.18 by December 31, 2022, followed by a further increase to 0.20 by December 31, 2023. These improvements indicate that Dana Inc had better liquidity positions in those years compared to 2021.
By December 31, 2024, the cash ratio had increased to 0.28, signaling a further enhancement in the company's ability to meet its short-term obligations with cash on hand. Overall, while the company experienced some fluctuations in its cash ratio over the years, the trend towards a higher cash ratio in recent years is a positive indication of improved liquidity management.
Peer comparison
Dec 31, 2024