Exponent Inc (EXPO)
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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 187,150 | 137,099 | 148,174 | 125,649 | 161,458 | 148,443 | 165,619 | 215,050 | 297,687 | 229,785 | 239,953 | 184,521 | 197,525 | 187,632 | 155,932 | 105,594 | 176,436 | 132,843 | 104,452 | 79,080 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 24,998 | — | 29,999 | 45,001 | 20,086 | 34,220 | 46,449 | 55,165 | 77,125 | 90,022 | 92,680 |
| Total current liabilities | US$ in thousands | 161,909 | 129,657 | 124,540 | 109,179 | 159,029 | 137,917 | 127,534 | 109,110 | 152,982 | 126,418 | 122,966 | 87,942 | 117,308 | 96,371 | 89,783 | 77,099 | 123,960 | 101,034 | 92,884 | 72,193 |
| Cash ratio | 1.16 | 1.06 | 1.19 | 1.15 | 1.02 | 1.08 | 1.30 | 1.97 | 1.95 | 2.02 | 1.95 | 2.44 | 2.07 | 2.16 | 2.12 | 1.97 | 1.87 | 2.08 | 2.09 | 2.38 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($187,150K
+ $—K)
÷ $161,909K
= 1.16
The cash ratio of Exponent Inc has shown some fluctuations over the period, ranging from a low of 1.02 to a high of 2.44. The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates that the company has more cash to cover its short-term obligations, providing a cushion in case of financial difficulties.
The trend in Exponent Inc's cash ratio appears to be generally stable and healthy, with most values above 1.00, indicating that the company has more than enough cash on hand to cover its short-term liabilities. However, the significant increase in the cash ratio in the most recent quarter compared to previous periods might suggest that the company has accumulated more cash relative to its short-term liabilities.
It is important to note that while a high cash ratio signals liquidity strength, excessively high cash levels can also indicate that the company is not investing its resources efficiently. Therefore, it is crucial for Exponent Inc to strike a balance between maintaining an adequate cash reserve for short-term obligations and deploying excess cash effectively to generate returns for shareholders.
Peer comparison
Dec 31, 2023