DXP Enterprises Inc (DXPE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 148,320 | 173,120 | 46,026 | 48,989 | 117,353 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 243,984 | 224,165 | 212,901 | 181,062 | 144,139 |
| Cash ratio | 0.61 | 0.77 | 0.22 | 0.27 | 0.81 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($148,320K
+ $—K)
÷ $243,984K
= 0.61
The cash ratio of DXP Enterprises Inc has fluctuated over the years, indicating variability in the company's ability to cover its short-term obligations with its available cash.
In 2020, the cash ratio was 0.81, suggesting that the company had $0.81 in cash for every $1 of current liabilities, reflecting a strong liquidity position.
However, there was a significant decrease in the cash ratio in 2021 to 0.27, indicating a lower cash position relative to current liabilities. This could suggest potential liquidity challenges or a strategic shift in managing cash resources.
The trend continued in 2022 with a further decrease to 0.22, signaling a continued decline in liquidity. This could potentially raise concerns about the company's ability to meet its short-term obligations with cash on hand.
By 2023, the cash ratio improved to 0.77, reflecting an increase in the company's cash position in relation to current liabilities. This improvement suggests a strengthening of liquidity, which bodes well for the company's financial health.
In 2024, the cash ratio stood at 0.61, indicating a slight decrease from the previous year but still above the levels seen in 2021 and 2022. This suggests that the company was able to maintain a relatively healthy liquidity position despite the minor decline.
Overall, the fluctuation in DXP Enterprises Inc's cash ratio over the years highlights the importance of closely monitoring liquidity levels to ensure the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024