EPAM Systems Inc (EPAM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,286,270 | 2,036,240 | 1,681,340 | 1,446,620 | 1,322,140 |
| Short-term investments | US$ in thousands | 1,690 | 60,739 | 60,336 | 0 | 60,007 |
| Total current liabilities | US$ in thousands | 821,039 | 644,932 | 747,483 | 763,420 | 465,950 |
| Cash ratio | 1.57 | 3.25 | 2.33 | 1.89 | 2.97 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,286,270K
+ $1,690K)
÷ $821,039K
= 1.57
The cash ratio reflects EPAM Systems Inc's ability to cover its short-term liabilities with its readily available cash and cash equivalents.
The cash ratio for EPAM Systems Inc fluctuated over the past five years. Starting at 2.97 on December 31, 2020, it decreased to 1.89 by December 31, 2021, indicating a potential decrease in the company's liquidity. However, the ratio improved in the following years, reaching 2.33 by December 31, 2022, 3.25 by December 31, 2023, before dropping to 1.57 by December 31, 2024.
While a higher cash ratio is generally preferred as it suggests a greater ability to meet short-term obligations, a decreasing trend in the cash ratio may raise concerns about liquidity management. It is important to further investigate the reasons behind these fluctuations to assess the company's liquidity position accurately and make informed decisions regarding its financial health.
Peer comparison
Dec 31, 2024