Comfort Systems USA Inc (FIX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 205,150 | 57,214 | 58,776 | 54,896 | 50,788 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,721,200 | 1,170,800 | 836,554 | 692,904 | 607,997 |
| Cash ratio | 0.12 | 0.05 | 0.07 | 0.08 | 0.08 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($205,150K
+ $—K)
÷ $1,721,200K
= 0.12
The cash ratio of Comfort Systems USA, Inc. has shown variability over the past five years. In 2023, the cash ratio improved to 0.15, indicating that the company had $0.15 in cash and cash equivalents for every dollar of current liabilities. This represents a positive trend from the previous year's value of 0.09.
A higher cash ratio generally suggests that a company is more capable of covering its short-term obligations using its readily available cash resources. It may reflect improved liquidity and financial stability.
The company's cash ratio had fluctuated around the 0.10 mark in the years prior to 2023, showing some consistency in its ability to meet short-term liabilities with cash on hand. Despite the variability, the cash ratio has generally remained within a reasonable range over the analyzed period.
Overall, the upward trend in the cash ratio from 2022 to 2023 could indicate an improvement in the company's liquidity position and its ability to meet its short-term obligations using cash reserves. This could potentially enhance investor confidence in the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023