ESAB Corp (ESAB)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 249,358 | 102,003 | 72,024 | 41,209 | 49,209 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 632,051 | 620,082 | 601,575 | 596,589 | 460,841 |
| Cash ratio | 0.39 | 0.16 | 0.12 | 0.07 | 0.11 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($249,358K
+ $—K)
÷ $632,051K
= 0.39
The cash ratio of ESAB Corp has shown fluctuations over the past five years based on the provided data.
- In December 31, 2020, the cash ratio was 0.11, indicating that the company had $0.11 in cash for every $1 of current liabilities. This may suggest a moderate liquidity position at that time.
- However, by December 31, 2021, the cash ratio decreased to 0.07, signifying a lower ability to cover short-term liabilities with cash on hand. This could imply a potential liquidity strain or reduced cash reserves.
- In December 31, 2022, the cash ratio increased to 0.12, indicating a slight improvement in liquidity compared to the previous year.
- The cash ratio further improved in December 31, 2023, reaching 0.16. This may suggest a healthier liquidity position, with the company having more cash to cover its short-term obligations.
- Subsequently, by December 31, 2024, the cash ratio significantly jumped to 0.39, signaling a substantial increase in liquidity. The company now appears to have ample cash reserves relative to its current liabilities.
Overall, the trend in ESAB Corp's cash ratio shows variations in liquidity management over the years, with the company experiencing both strengths and potential vulnerabilities in its ability to meet short-term obligations with cash on hand.
Peer comparison
Dec 31, 2024