ESCO Technologies Inc (ESE)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 65,963 | 41,866 | 97,724 | 56,232 | 52,560 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 349,854 | 314,651 | 318,129 | 274,995 | 255,484 |
| Cash ratio | 0.19 | 0.13 | 0.31 | 0.20 | 0.21 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($65,963K
+ $—K)
÷ $349,854K
= 0.19
The cash ratio of ESCO Technologies Inc has fluctuated over the past five years, ranging from a low of 0.13 in September 2023 to a high of 0.31 in September 2022. In general, the company has maintained a relatively conservative approach to holding cash compared to its current liabilities, with the ratio consistently below 1. This indicates that ESCO Technologies may not have enough liquid cash to cover its short-term obligations entirely. The decrease in the cash ratio from 2022 to 2023 could suggest potential liquidity challenges or changes in cash management strategies. Investors and stakeholders may want to further investigate the company's cash management practices and overall liquidity position to assess its financial health and ability to meet short-term obligations.
Peer comparison
Sep 30, 2024