Now Inc (DNOW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 299,000 | 212,000 | 313,000 | 387,000 | 183,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 418,000 | 439,000 | 369,000 | 272,000 | 396,000 |
| Cash ratio | 0.72 | 0.48 | 0.85 | 1.42 | 0.46 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($299,000K
+ $—K)
÷ $418,000K
= 0.72
The cash ratio of NOW Inc has fluctuated over the past five years. In 2023, the cash ratio stood at 0.76, indicating that the company had $0.76 in liquid assets available to cover each dollar of its current liabilities. This was an improvement compared to 2022 when the cash ratio was 0.54.
In 2021, NOW Inc experienced a higher cash ratio of 0.89, suggesting a stronger liquidity position than in the previous year. However, in 2020, the cash ratio significantly increased to 1.47, signaling a substantial improvement in the company's ability to meet short-term obligations using its cash and cash equivalents.
The cash ratio dipped to 0.50 in 2019, indicating a decrease in liquidity compared to the preceding years. Overall, fluctuations in NOW Inc's cash ratio demonstrate varying levels of liquidity and the company's ability to meet its short-term financial obligations with cash on hand.
Peer comparison
Dec 31, 2023