Dover Corporation (DOV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,844,880 | 398,561 | 380,868 | 385,504 | 513,075 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,196,530 | 2,413,770 | 2,773,270 | 2,250,340 | 1,738,800 |
| Cash ratio | 0.84 | 0.17 | 0.14 | 0.17 | 0.30 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,844,880K
+ $—K)
÷ $2,196,530K
= 0.84
The Cash Ratio for Dover Corporation has experienced fluctuations over the past five years. Starting at 0.30 on December 31, 2020, the ratio decreased to 0.17 by December 31, 2021, signaling a decrease in the company's ability to cover its short-term liabilities with cash alone. The ratio continued to decline to 0.14 by the end of 2022, indicating a further strain on the company's liquidity position. However, there was a noticeable improvement by December 31, 2023, where the ratio increased to 0.17, suggesting a possible enhancement in managing short-term cash obligations.
The most significant change occurred by December 31, 2024, with the Cash Ratio soaring to 0.84. This sharp increase likely indicates a substantial buildup of cash reserves relative to short-term liabilities, showcasing a strong ability to meet immediate financial obligations purely with cash on hand. Overall, the fluctuating trend in the Cash Ratio for Dover Corporation highlights the importance of closely monitoring and managing liquidity levels to ensure the company's financial stability and operational flexibility.
Peer comparison
Dec 31, 2024