Dril-Quip Inc (DRQ)
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 | 187,323 | 181,072 | 236,490 | 235,343 | 259,407 | 290,279 | 320,784 | 338,008 | 355,451 | 375,172 | 370,481 | 362,213 | 345,955 | 359,171 | 345,808 | 343,472 | 398,946 | 413,102 | 423,126 | 414,808 |
| Short-term investments | US$ in thousands | 25,908 | 8,911 | 18,795 | 18,921 | 32,232 | 25,287 | — | — | 0 | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 117,703 | 106,735 | 88,124 | 83,360 | 87,555 | 89,287 | 84,856 | 70,321 | 93,663 | 91,826 | 106,535 | 95,307 | 85,512 | 100,982 | 113,711 | 93,446 | 96,940 | 96,533 | 87,097 | 70,729 |
| Cash ratio | 1.81 | 1.78 | 2.90 | 3.05 | 3.33 | 3.53 | 3.78 | 4.81 | 3.79 | 4.09 | 3.48 | 3.80 | 4.05 | 3.56 | 3.04 | 3.68 | 4.12 | 4.28 | 4.86 | 5.86 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($187,323K
+ $25,908K)
÷ $117,703K
= 1.81
The cash ratio measures a company's ability to cover its short-term liabilities using its readily available cash and cash equivalents. In the case of Dril-Quip, Inc., the trend of the cash ratio over the past eight quarters has been varying. The cash ratio has declined from 5.41 in Q1 2022 to 2.01 in Q4 2023.
This downward trend may indicate a decrease in the company's ability to cover its short-term obligations solely through its cash reserves. A cash ratio of 2.01 in Q4 2023 suggests that for every dollar of current liabilities, Dril-Quip has $2.01 in cash and cash equivalents available.
While the cash ratio provides insight into the company's liquidity position, it is essential to consider other factors such as cash flow trends, operating efficiency, and overall financial health to have a comprehensive understanding of Dril-Quip's financial standing.
Peer comparison
Dec 31, 2023