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.
Peer comparison
Dec 31, 2023