Expeditors International of Washington Inc (EXPD)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,512,880	2,034,130	1,728,690	1,527,790	1,230,490
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,704,410	2,054,060	3,726,300	1,893,040	1,168,320
Cash ratio		0.89	0.99	0.46	0.81	1.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,512,880K + $—K) ÷ $1,704,410K
= 0.89

The cash ratio measures a company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

Expeditors International Of Washington, Inc.'s cash ratio has fluctuated over the past five years. In 2023, the cash ratio stood at 1.12, slightly lower than the previous year's ratio of 1.17. This indicates a slight decrease in the company's ability to cover its short-term liabilities with cash and cash equivalents.

Comparing the 2023 ratio to the ratios from 2021, 2020, and 2019, we observe a mixed trend. The cash ratio in 2023 is higher than the ratio in 2021 (0.76), reflecting an improvement in the company's ability to meet short-term obligations with available cash. However, it is lower than the ratios in 2020 (1.04) and 2019 (1.25), indicating a slight decline in liquidity compared to those years.

Overall, Expeditors International Of Washington, Inc.'s cash ratio of 1.12 in 2023 suggests that the company still maintains a relatively healthy liquidity position, albeit slightly weaker than the previous year. It is important for investors and stakeholders to closely monitor changes in the cash ratio to assess the company's ability to manage short-term obligations effectively.