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

Company name
Symbol
Cash ratio
Floor & Decor Holdings Inc
FND
0.15
Builders FirstSource Inc
BLDR
0.09
Home Depot Inc
HD
0.06
Lowe's Companies Inc
LOW
0.11