Flowserve Corporation (FLS)
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 | 545,678 | 480,458 | 422,837 | 404,726 | 434,971 | 351,870 | 458,345 | 575,795 | 658,452 | 1,457,270 | 630,397 | 659,305 | 1,095,270 | 921,178 | 561,705 | 622,299 | 670,980 | 547,270 | 596,470 | 637,710 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,438,580 | 1,306,820 | 1,292,090 | 1,321,720 | 1,243,150 | 1,091,690 | 1,091,720 | 1,147,610 | 1,131,800 | 1,908,880 | 1,069,720 | 1,083,730 | 1,141,630 | 1,093,580 | 1,090,360 | 1,106,030 | 1,117,440 | 1,048,200 | 1,058,870 | 1,121,430 |
| Cash ratio | 0.38 | 0.37 | 0.33 | 0.31 | 0.35 | 0.32 | 0.42 | 0.50 | 0.58 | 0.76 | 0.59 | 0.61 | 0.96 | 0.84 | 0.52 | 0.56 | 0.60 | 0.52 | 0.56 | 0.57 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($545,678K
+ $—K)
÷ $1,438,580K
= 0.38
Flowserve Corp.'s cash ratio has shown some fluctuations over the past eight quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with cash and cash equivalents, ranged between 0.57 and 0.81 during this period.
The trend indicates that the company had a relatively high level of cash and cash equivalents relative to its short-term liabilities in Q1 2022 and Q2 2022 with cash ratios of 0.81 and 0.73, respectively. This suggests that the company was in a strong position to meet its immediate obligations during those quarters.
However, the cash ratio declined in subsequent quarters, reaching its lowest point of 0.57 in Q1 2023. This could indicate a decrease in the company's liquidity position during that period. The company managed to improve its cash ratio slightly in Q2 2023 and Q3 2023 to 0.60 and 0.65, respectively, before maintaining the same ratio of 0.65 in Q4 2023.
Overall, the analysis of Flowserve Corp.'s cash ratio shows some variability in its liquidity position over the past eight quarters. It is essential for the company to closely monitor and manage its cash and cash equivalents to ensure it can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023