ESAB Corp (ESAB)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 249,358 | 253,670 | 228,470 | 76,495 | 102,003 | 82,833 | 74,449 | 82,064 | 72,024 | 60,634 | 53,475 | 56,631 | 41,209 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 632,051 | 637,071 | 651,096 | 631,302 | 620,082 | 610,357 | 618,372 | 630,422 | 601,575 | 610,582 | 642,082 | 652,410 | 596,589 |
| Cash ratio | 0.39 | 0.40 | 0.35 | 0.12 | 0.16 | 0.14 | 0.12 | 0.13 | 0.12 | 0.10 | 0.08 | 0.09 | 0.07 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($249,358K
+ $—K)
÷ $632,051K
= 0.39
ESAB Corp's cash ratio, a liquidity ratio that measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has been steadily increasing over the years. The cash ratio was 0.07 as of December 31, 2021, and gradually improved to reach 0.39 by December 31, 2024. This growth indicates that ESAB Corp has been building up its cash reserves relative to its short-term obligations, which is a positive sign for the company's liquidity position. The company seems to have a sufficient amount of cash on hand to meet its short-term financial commitments. However, it is important to consider other liquidity ratios and overall financial health when evaluating ESAB Corp's financial stability.
Peer comparison
Dec 31, 2024