Dana Inc (DAN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 529,000 | 425,000 | 268,000 | 559,000 | 508,000 |
| Short-term investments | US$ in thousands | — | 17,000 | 17,000 | 21,000 | 19,000 |
| Total current liabilities | US$ in thousands | 2,602,000 | 2,479,000 | 2,174,000 | 1,941,000 | 1,845,000 |
| Cash ratio | 0.20 | 0.18 | 0.13 | 0.30 | 0.29 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($529,000K
+ $—K)
÷ $2,602,000K
= 0.20
The cash ratio of Dana Inc has exhibited some fluctuation over the past five years:
- In 2023, the cash ratio increased to 0.29 from 0.26 in 2022, indicating an improvement in the company's ability to cover its short-term liabilities with its cash on hand.
- Prior to 2023, there was a decreasing trend in the cash ratio from 0.36 in both 2021 and 2020 to 0.26 in 2022, suggesting a potential strain on the company's liquidity position during those years.
- Interestingly, the cash ratio remained consistent at 0.36 in both 2020 and 2019, indicating a stable liquidity position at that time.
Overall, the improvement in the cash ratio in 2023 compared to the previous year is a positive sign for Dana Inc's liquidity management, but it would be important to monitor future trends to ensure continued adequate liquidity to meet short-term obligations.
Peer comparison
Dec 31, 2023