ESAB Corp (ESAB)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 102,003 | 82,833 | 74,449 | 82,064 | 72,024 | 60,634 | 53,475 | 56,631 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 620,082 | 610,357 | 618,372 | 630,422 | 601,575 | 610,582 | 642,082 | 652,410 |
| Cash ratio | 0.16 | 0.14 | 0.12 | 0.13 | 0.12 | 0.10 | 0.08 | 0.09 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($102,003K
+ $—K)
÷ $620,082K
= 0.16
The cash ratio of ESAB Corp remained relatively stable throughout the past five quarters, ranging between 0.33 and 0.35. This indicates that the company has a sufficient amount of cash and cash equivalents to cover its short-term liabilities. A cash ratio of 0.35 means that for every $1 of current liabilities, ESAB Corp has $0.35 in cash and cash equivalents available. The consistency in the cash ratio suggests that ESAB Corp effectively manages its liquidity position and is able to meet its short-term financial obligations without relying heavily on external financing or liquidating other assets. Overall, the steady cash ratio of ESAB Corp reflects a sound financial position with a healthy level of liquidity.
Peer comparison
Dec 31, 2023