Equifax Inc (EFX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 169,900 | 216,800 | 285,200 | 224,700 | 1,684,600 |
| Short-term investments | US$ in thousands | — | 1,295,000 | -36,800 | — | -149,000 |
| Total current liabilities | US$ in thousands | 1,811,500 | 2,019,000 | 2,015,200 | 2,291,300 | 2,483,100 |
| Cash ratio | 0.09 | 0.75 | 0.12 | 0.10 | 0.62 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($169,900K
+ $—K)
÷ $1,811,500K
= 0.09
Equifax Inc's cash ratio, which reflects the firm's ability to cover its short-term liabilities with cash and cash equivalents, has experienced fluctuations over the past five years. In December 31, 2020, the cash ratio stood at 0.62, indicating the company had $0.62 in cash and equivalents for every $1 of current liabilities. However, by December 31, 2021, the ratio dropped significantly to 0.10, suggesting a decrease in liquidity.
Subsequently, by December 31, 2022, the cash ratio improved slightly to 0.12, but remained relatively low compared to previous years. The ratio saw a significant improvement by December 31, 2023, reaching 0.75, indicating a healthier liquidity position for the company. However, by December 31, 2024, the ratio decreased to 0.09, falling back to a lower level.
Overall, Equifax Inc's cash ratio has displayed variability, indicating fluctuations in the company's ability to meet short-term obligations with its available cash resources. Continued monitoring of this ratio is essential to assess the company's liquidity and financial health.