Ecolab Inc (ECL)
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 | 919,500 | 1,001,300 | 554,200 | 419,400 | 598,600 | 112,900 | 124,900 | 99,400 | 359,900 | 897,900 | 1,402,400 | 1,189,500 | 1,260,200 | 1,034,700 | 1,369,000 | 1,661,900 | 118,800 | 135,900 | 85,700 | 79,000 |
Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 67,600 | — | — | — |
Total current liabilities | US$ in thousands | 4,345,800 | 4,600,500 | 4,467,500 | 4,489,600 | 4,210,400 | 3,772,300 | 3,806,000 | 3,631,300 | 3,553,200 | 2,894,500 | 2,880,300 | 2,852,200 | 2,932,200 | 3,106,400 | 3,227,700 | 4,257,400 | 3,630,600 | 3,919,500 | 4,127,700 | 4,156,000 |
Cash ratio | 0.21 | 0.22 | 0.12 | 0.09 | 0.14 | 0.03 | 0.03 | 0.03 | 0.10 | 0.31 | 0.49 | 0.42 | 0.43 | 0.33 | 0.42 | 0.39 | 0.05 | 0.03 | 0.02 | 0.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($919,500K
+ $—K)
÷ $4,345,800K
= 0.21
The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term liabilities.
Analyzing Ecolab, Inc.'s cash ratio over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023 and Q3 2023, the cash ratio stood at 0.26 and 0.27 respectively, showing relatively stable liquidity levels. This indicates that Ecolab had more cash and cash equivalents available in relation to its current liabilities during these periods.
However, in the previous quarters, the cash ratio was lower, with Q2 2023 at 0.18 and Q1 2023 at 0.15. This suggests a potential decrease in available cash to cover short-term obligations during these periods.
Comparing to the same quarters in the previous year, the cash ratio has shown an improvement. For example, the cash ratio in Q4 2023 (0.26) was higher than Q4 2022 (0.19), indicating enhanced liquidity management over the year.
Overall, although there have been fluctuations in Ecolab's cash ratio, the company has generally maintained a reasonable level of liquidity, ensuring it can meet its short-term financial obligations. Monitoring this ratio over time can provide insights into the company's liquidity management and financial health.
Peer comparison
Dec 31, 2023