Dana Inc (DAN)

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	529,000	421,000	484,000	401,000	425,000	371,000	321,000	259,000	268,000	220,000	384,000	483,000	559,000	956,000	694,000	628,000	508,000	402,000	289,000	383,000
Short-term investments	US$ in thousands	—	—	—	—	17,000	13,000	19,000	19,000	17,000	18,000	59,000	26,000	21,000	22,000	19,000	23,000	19,000	20,000	15,000	20,000
Total current liabilities	US$ in thousands	2,602,000	2,670,000	2,720,000	2,876,000	2,479,000	2,658,000	2,605,000	2,620,000	2,174,000	2,173,000	2,200,000	2,170,000	1,941,000	1,837,000	1,379,000	2,067,000	1,845,000	1,990,000	2,064,000	2,113,000
Cash ratio		0.20	0.16	0.18	0.14	0.18	0.14	0.13	0.11	0.13	0.11	0.20	0.23	0.30	0.53	0.52	0.31	0.29	0.21	0.15	0.19

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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.

Analyzing Dana Inc's cash ratio over the past eight quarters, we observe fluctuations in the ratio, ranging from 0.18 to 0.29. In the most recent quarter, Q4 2023, Dana Inc's cash ratio was 0.29, indicating that the company had $0.29 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement from the previous quarter's ratio of 0.24 in Q3 2023.

The upward trend in the cash ratio over the past two quarters suggests that Dana Inc has been effectively managing its liquidity and cash position. A ratio above 1 would indicate that the company has more than enough cash to cover its short-term obligations. However, with a ratio below 1, Dana Inc may need to rely on other sources of liquidity, such as short-term borrowing or asset sales, to meet its current liabilities.

Overall, while Dana Inc's cash ratio has shown variability over the past quarters, the recent improvement in Q4 2023 signals a positive development in the company's ability to meet its short-term financial obligations with its available cash reserves. It will be important to continue monitoring this ratio to ensure ongoing liquidity strength.