Floor & Decor Holdings Inc (FND)
Cash ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 187,669 | 34,382 | 9,794 | 139,444 | 307,772 |
Short-term investments | US$ in thousands | — | — | — | — | — |
Total current liabilities | US$ in thousands | 1,244,190 | 1,152,010 | 1,006,760 | 1,032,020 | 698,836 |
Cash ratio | 0.15 | 0.03 | 0.01 | 0.14 | 0.44 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($187,669K
+ $—K)
÷ $1,244,190K
= 0.15
The cash ratio of Floor & Decor Holdings Inc has shown a declining trend over the period from December 31, 2020, to December 31, 2024. Starting at 0.44 in 2020, the ratio decreased to 0.14 in 2021, further dropping to 0.01 in 2022. However, there was a slight improvement as of December 31, 2023, with the cash ratio rising to 0.03, and then increasing notably to 0.15 by December 31, 2024.
The decreasing trend in the cash ratio from 2020 to 2022 indicates that the company had a lower level of cash and cash equivalents relative to its current liabilities during those years, which could potentially signify liquidity challenges. The subsequent improvement in the cash ratio in 2023 and 2024 suggests a better liquidity position, with a higher proportion of cash to meet short-term obligations. However, the ratio of 0.15 in 2024 indicates that the company still holds a relatively low level of cash compared to its current liabilities.
Overall, the fluctuating nature of the cash ratio over the five-year period indicates varying levels of liquidity and the company's ability to cover its short-term obligations with its available cash reserves.
Peer comparison
Dec 31, 2024