3D Systems Corporation (DDD)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	331,525	388,134	789,657	75,010	133,665
Short-term investments	US$ in thousands	0	180,603	0	5,016	8,327
Total current liabilities	US$ in thousands	147,188	151,808	178,012	175,730	162,964
Cash ratio		2.25	3.75	4.44	0.46	0.87

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($331,525K + $0K) ÷ $147,188K
= 2.25

The cash ratio measures the ability of a company to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.

3D Systems Corporation's cash ratio has fluctuated over the past five years. In 2023, the cash ratio was 2.25, showing a decrease from the previous year's 3.75. Despite the decline, the company still had a reasonable level of cash to cover its short-term obligations.

Compared to 2021 and 2020, where the cash ratios were 4.44 and 0.46 respectively, 3D Systems Corporation significantly improved its liquidity position in 2021 and maintained a relatively stable cash position in 2022. The increase in 2021 indicates a more robust liquidity position, while the low ratio in 2020 suggests some liquidity challenges.

Overall, 3D Systems Corporation's cash ratio has shown fluctuations, indicating varying levels of liquidity over the years. It is crucial for the company to manage its cash effectively to ensure it can meet its short-term obligations efficiently.