Expeditors International of Washington, Inc. (EXPD)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	1,148,320	1,512,880	2,034,130	1,728,690	1,527,790
Short-term investments	US$ in thousands	-524,759	—	—	—	—
Total current liabilities	US$ in thousands	2,066,470	1,704,410	2,054,060	3,726,300	1,893,040
Cash ratio		0.30	0.89	0.99	0.46	0.81

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,148,320K + $-524,759K) ÷ $2,066,470K
= 0.30

The cash ratio of Expeditors International of Washington, Inc. has fluctuated over the past five years, as per the provided data.

As of December 31, 2020, the cash ratio stood at 0.81, indicating that the company had $0.81 in cash and cash equivalents for every dollar of current liabilities. This suggests a healthy liquidity position at the end of 2020.

However, by December 31, 2021, the cash ratio had decreased to 0.46, reflecting a decline in liquidity compared to the previous year. A lower cash ratio could indicate potential challenges in meeting short-term obligations with available cash resources.

In the following year, by December 31, 2022, the cash ratio improved significantly to 0.99, surpassing the previous levels and pointing towards a stronger liquidity position for the company. This increase may indicate more cash reserves relative to current liabilities, enhancing the company's ability to cover its short-term obligations.

By the end of 2023 (December 31), the cash ratio was reported at 0.89, remaining relatively stable compared to the previous year. This suggests that the company maintained a reasonable level of liquidity to meet its short-term financial commitments.

Interestingly, the cash ratio dropped sharply to 0.30 by December 31, 2024, indicating a significant reduction in liquidity compared to the previous year. A lower cash ratio in 2024 could raise concerns about the company's ability to cover immediate liabilities with available cash resources.

In conclusion, Expeditors International of Washington, Inc. experienced varying levels of liquidity over the five-year period based on the cash ratio data provided. It is essential for investors and stakeholders to monitor these fluctuations to assess the company's ability to meet its short-term obligations efficiently.