National Vision Holdings Inc (EYE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 149,896 | 229,425 | 305,800 | 373,903 | 39,342 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 397,700 | 344,264 | 343,803 | 328,680 | 273,179 |
| Cash ratio | 0.38 | 0.67 | 0.89 | 1.14 | 0.14 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($149,896K
+ $—K)
÷ $397,700K
= 0.38
The cash ratio of National Vision Holdings Inc has shown a declining trend over the past five years. The ratio decreased from 0.14 in 2019 to 0.38 in 2023. This indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over time. A cash ratio below 1.0 suggests that the company may have difficulty meeting its short-term obligations solely with cash on hand. The decreasing trend in the cash ratio may raise concerns about the company's liquidity position and ability to manage its short-term financial obligations effectively. It would be advisable for stakeholders to monitor the company's cash management strategies and assess its liquidity position relative to industry benchmarks.
Peer comparison
Dec 31, 2023