Floor & Decor Holdings Inc (FND)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 34,382 | 9,794 | 139,444 | 307,772 | 27,037 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,152,010 | 1,006,760 | 1,032,020 | 698,836 | 552,541 |
| Cash ratio | 0.03 | 0.01 | 0.14 | 0.44 | 0.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($34,382K
+ $—K)
÷ $1,152,010K
= 0.03
The cash ratio for Floor & Decor Holdings Inc has shown significant fluctuations over the past five years. The ratio stood at 0.03 as of December 31, 2023, indicating that the company had $0.03 in cash and cash equivalents for every $1 of current liabilities. This suggests that the company may have limited cash reserves to cover its short-term obligations.
Comparing this to the previous year, the cash ratio was 0.01 as of December 31, 2022, showing a slight improvement in liquidity position. However, this ratio remains relatively low, indicating that Floor & Decor Holdings Inc may still face challenges in meeting its short-term obligations with the available cash on hand.
In contrast, the cash ratio was significantly higher in the prior years, with values of 0.14 as of December 31, 2021, 0.44 as of December 31, 2020, and 0.05 as of December 31, 2019. These higher ratios suggest that the company had stronger liquidity positions in those years, with more cash available to cover its short-term liabilities.
Overall, the fluctuating trend in Floor & Decor Holdings Inc's cash ratio indicates varying levels of liquidity over the past five years. Investors and stakeholders may need to closely monitor the company's cash management strategies and financial health to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023