Entegris Inc (ENTG)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 329,213 456,929 561,559 402,565 580,893
Short-term investments US$ in thousands — 21,451 32,481 — —
Total current liabilities US$ in thousands 525,178 513,995 761,931 379,001 302,626
Cash ratio 0.63 0.93 0.78 1.06 1.92

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($329,213K + $—K) ÷ $525,178K
= 0.63

The cash ratio of Entegris Inc has shown a declining trend over the past five years based on the provided data. The ratio was relatively healthy at 1.92 as of December 31, 2020, indicating that the company had $1.92 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2024, the cash ratio had decreased to 0.63, suggesting that the company's liquidity position weakened as it held only $0.63 in cash and cash equivalents for every $1 of current liabilities.

The downward trend in the cash ratio raises concerns about Entegris Inc's ability to meet its short-term obligations using its available cash resources. A declining cash ratio may indicate difficulties in generating sufficient cash inflows to cover immediate liabilities. It could also imply that the company may need to rely more on other sources of liquidity, such as borrowing or asset sales, to fund its operations and meet its financial obligations.

Management should closely monitor the cash position of the company and take appropriate actions to improve liquidity, such as enhancing cash management practices, optimizing working capital efficiency, and potentially exploring opportunities to increase cash reserves. Investors and stakeholders should pay attention to the evolving cash ratio of Entegris Inc as it can provide insights into the company's short-term financial health and risk exposure.