Flowserve Corporation (FLS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 675,441 | 545,678 | 434,971 | 658,452 | 1,095,270 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,468,080 | 1,438,580 | 1,243,150 | 1,131,800 | 1,141,630 |
| Cash ratio | 0.46 | 0.38 | 0.35 | 0.58 | 0.96 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($675,441K
+ $—K)
÷ $1,468,080K
= 0.46
Flowserve Corporation's cash ratio has shown a declining trend over the past five years. Starting at 0.96 on December 31, 2020, the cash ratio decreased to 0.58 by December 31, 2021, further dropping to 0.35 by December 31, 2022. However, there was a slight improvement by December 31, 2023, with the cash ratio increasing to 0.38. By the end of December 31, 2024, the cash ratio improved further to 0.46.
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 short-term obligations without relying on external financing. While Flowserve Corporation's cash ratio has fluctuated over the years, it is essential to continue monitoring this ratio to ensure the company's liquidity position remains healthy and sustainable.
Peer comparison
Dec 31, 2024