Dover Corporation (DOV)
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 | 398,561 | 283,798 | 285,777 | 272,426 | 380,868 | 306,002 | 515,371 | 289,984 | 385,504 | 739,144 | 601,359 | 536,512 | 513,075 | 427,501 | 649,032 | 508,907 | 397,253 | 340,532 | 321,326 | 243,014 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,413,770 | 2,187,780 | 2,424,100 | 2,508,490 | 2,773,270 | 2,888,750 | 2,547,640 | 2,246,920 | 2,250,340 | 2,005,880 | 1,901,410 | 1,775,360 | 1,738,800 | 1,766,370 | 2,113,760 | 2,094,360 | 1,748,090 | 1,825,300 | 1,955,120 | 1,946,920 |
| Cash ratio | 0.17 | 0.13 | 0.12 | 0.11 | 0.14 | 0.11 | 0.20 | 0.13 | 0.17 | 0.37 | 0.32 | 0.30 | 0.30 | 0.24 | 0.31 | 0.24 | 0.23 | 0.19 | 0.16 | 0.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($398,561K
+ $—K)
÷ $2,413,770K
= 0.17
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. In the case of Dover Corp., the cash ratio has fluctuated over the past eight quarters, ranging from 0.16 to 0.27.
The cash ratio indicates that for every dollar of current liabilities, Dover Corp. had $0.22 in cash available at the end of Q4 2023, which decreased from $0.27 in Q2 2022. This suggests that the company may have experienced a decrease in its cash holdings relative to its current liabilities over this period.
While the cash ratio for Dover Corp. has shown some variability, it is important to note that a higher cash ratio generally indicates a stronger liquidity position, as it implies that the company has more cash readily available to meet its short-term obligations. Conversely, a lower cash ratio may indicate that the company may struggle to cover its immediate liabilities with its existing cash reserves.
Overall, the trend in Dover Corp.'s cash ratio should be monitored closely to assess its liquidity position and ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023