Deluxe Corporation (DLX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 71,962 | 40,435 | 41,231 | 123,122 | 73,620 |
| Short-term investments | US$ in thousands | — | 8,126 | 13,307 | 28,462 | — |
| Total current liabilities | US$ in thousands | 819,065 | 752,345 | 683,358 | 411,820 | 407,947 |
| Cash ratio | 0.09 | 0.06 | 0.08 | 0.37 | 0.18 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($71,962K
+ $—K)
÷ $819,065K
= 0.09
The cash ratio of Deluxe Corp. has shown some fluctuations over the past five years. In 2023, the cash ratio was 0.61, indicating that the company had $0.61 in cash and cash equivalents for every dollar of current liabilities. This was an improvement compared to 2022 and 2021 when the cash ratios were 0.54 and 0.52, respectively.
The cash ratio was at its highest in 2020 at 0.70, suggesting a stronger liquidity position where the company had sufficient cash reserves to cover its short-term obligations. However, the ratio decreased in 2021 and 2022 before bouncing back in 2023.
Overall, the trend in the cash ratio for Deluxe Corp. shows variability but generally indicates that the company has maintained a sufficient level of cash to meet its short-term obligations over the years. It is important to continue monitoring this ratio to ensure the company's liquidity position remains healthy.