Exponent Inc (EXPO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 258,901 | 187,150 | 161,458 | 297,687 | 197,525 |
| Short-term investments | US$ in thousands | — | — | — | 0 | 45,001 |
| Total current liabilities | US$ in thousands | 163,183 | 161,909 | 159,029 | 152,982 | 117,308 |
| Cash ratio | 1.59 | 1.16 | 1.02 | 1.95 | 2.07 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($258,901K
+ $—K)
÷ $163,183K
= 1.59
The cash ratio measures a company's ability to pay off its short-term liabilities using only its cash and cash equivalents. Looking at Exponent Inc's cash ratio over the past five years, the trend shows some fluctuations.
As of December 31, 2020, Exponent Inc had a cash ratio of 2.07, indicating that the company had more than enough cash and cash equivalents to cover its short-term liabilities at that time. However, by December 31, 2021, the cash ratio had slightly decreased to 1.95, although it still reflected a strong liquidity position.
By December 31, 2022, the cash ratio had decreased significantly to 1.02, suggesting that Exponent Inc's ability to cover its short-term obligations with cash had weakened. The cash ratio improved slightly to 1.16 by December 31, 2023, but it remained below the levels seen in the earlier years.
As of December 31, 2024, the cash ratio had increased to 1.59, indicating a slight improvement in Exponent Inc's liquidity position compared to the previous year. Overall, the fluctuations in the cash ratio over the five-year period suggest that Exponent Inc experienced some variations in its cash position relative to its short-term liabilities, with periods of stronger and weaker liquidity. It is important for the company to closely monitor its cash reserves and manage its short-term obligations effectively to ensure financial stability.
Peer comparison
Dec 31, 2024