Fluor Corporation (FLR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,519,000 | 2,439,000 | 2,209,000 | 2,198,780 | 1,997,200 |
| Short-term investments | US$ in thousands | 69,000 | 185,000 | 127,222 | 23,345 | 7,262 |
| Total current liabilities | US$ in thousands | 3,163,000 | 3,216,000 | 3,614,000 | 3,572,040 | 3,905,120 |
| Cash ratio | 0.82 | 0.82 | 0.65 | 0.62 | 0.51 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,519,000K
+ $69,000K)
÷ $3,163,000K
= 0.82
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet its short-term obligations.
Fluor Corporation's cash ratio has shown a positive trend over the past five years, increasing from 0.83 in 2019 to 1.24 in 2023. This indicates an improvement in the company's liquidity position and its ability to pay off its current liabilities with its available cash and cash equivalents.
The company's cash ratio remained relatively stable between 2020 and 2022, ranging from 0.98 to 1.22, before experiencing a notable increase in 2023. This improvement could be attributed to better cash management practices, increased cash reserves, or a reduction in short-term liabilities.
Overall, Fluor Corporation's increasing cash ratio suggests that the company has been able to strengthen its liquidity position over the years, which can be a positive indicator of financial health and stability.
Peer comparison
Dec 31, 2023