Equifax Inc (EFX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 216,800 | 285,200 | 224,700 | 1,684,600 | 401,300 |
| Short-term investments | US$ in thousands | — | -36,800 | — | -149,000 | — |
| Total current liabilities | US$ in thousands | 2,019,000 | 2,015,200 | 2,291,300 | 2,483,100 | 1,359,100 |
| Cash ratio | 0.11 | 0.12 | 0.10 | 0.62 | 0.30 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($216,800K
+ $—K)
÷ $2,019,000K
= 0.11
The cash ratio of Equifax, Inc. has shown varying trends over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In 2023, the cash ratio decreased to 0.22 from 0.25 in 2022, indicating a slight decrease in the company's liquidity position. This could suggest that Equifax may have less cash available relative to its current liabilities compared to the previous year.
In 2021, the cash ratio was 0.17, which was lower than the ratios in the two preceding years. This decrease in the cash ratio may indicate that Equifax had difficulty meeting its short-term obligations with its cash reserves in 2021.
A notable increase in the cash ratio was observed in 2020, where it reached 0.74, the highest ratio in the provided data. This signifies that Equifax had a significant amount of cash on hand relative to its current liabilities in 2020, implying a strong liquidity position.
In 2019, the cash ratio was 0.50, indicating that Equifax had a moderate level of liquidity to cover its short-term obligations with available cash resources.
Overall, the fluctuating trend in Equifax's cash ratio suggests some variability in the company's liquidity position over the past five years. It is essential for investors and stakeholders to further investigate the reasons behind these fluctuations to assess the company's ability to meet its short-term liabilities in the future.