Fox Factory Holding Corp (FOXF)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 83,642 | 145,250 | 179,686 | 245,764 | 43,736 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 207,550 | 258,889 | 229,862 | 165,389 | 91,813 |
| Cash ratio | 0.40 | 0.56 | 0.78 | 1.49 | 0.48 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($83,642K
+ $—K)
÷ $207,550K
= 0.40
The cash ratio of Fox Factory Holding Corp has fluctuated over the past five years, ranging from 0.40 in 2023 to 1.49 in 2020. The cash ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, cash and cash equivalents. A higher cash ratio implies a stronger ability to meet immediate obligations without relying on external sources of funding.
In 2023, the cash ratio decreased to 0.40, signaling a lower level of cash and cash equivalents relative to current liabilities. This could indicate a potential liquidity challenge in the short term. In contrast, the highest cash ratio of 1.49 in 2020 suggests a solid liquidity position, with significant cash reserves available to cover short-term obligations comfortably.
Overall, a declining trend in the cash ratio from 2020 to 2023 may raise concerns about the company's liquidity management and ability to meet short-term obligations. Further analysis would be necessary to understand the factors contributing to these fluctuations and assess the company's overall financial health.
Peer comparison
Dec 31, 2023