Now Inc (DNOW)
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 | 299,000 | 194,000 | 203,000 | 168,000 | 212,000 | 267,000 | 232,000 | 293,000 | 313,000 | 312,000 | 293,000 | 374,000 | 387,000 | 325,000 | 269,000 | 202,000 | 183,000 | 113,000 | 80,000 | 87,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 418,000 | 423,000 | 501,000 | 447,000 | 439,000 | 458,000 | 408,000 | 395,000 | 369,000 | 375,000 | 341,000 | 298,000 | 272,000 | 264,000 | 278,000 | 385,000 | 396,000 | 470,000 | 468,000 | 475,000 |
| Cash ratio | 0.72 | 0.46 | 0.41 | 0.38 | 0.48 | 0.58 | 0.57 | 0.74 | 0.85 | 0.83 | 0.86 | 1.26 | 1.42 | 1.23 | 0.97 | 0.52 | 0.46 | 0.24 | 0.17 | 0.18 |
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 for NOW Inc has varied over the past eight quarters, ranging from 0.44 to 0.78. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
In this case, the cash ratio has generally fluctuated within a moderate range, with the lowest value of 0.44 observed in Q1 2023 and the highest value of 0.78 in Q1 2022. The ratio experienced a notable increase in Q1 2022, indicating a strong cash position relative to short-term liabilities at that time.
Overall, NOW Inc's cash ratio has displayed some variability, suggesting fluctuations in the company's liquidity position over the analyzed period. Further analysis of trends in cash balances and short-term liabilities would provide additional insights into NOW Inc's liquidity management.
Peer comparison
Dec 31, 2023