Fortrea Holdings Inc. (FTRE)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 108,600 | 107,500 | 114,300 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 775,900 | 774,600 | 752,100 |
| Cash ratio | 0.14 | 0.14 | 0.15 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($108,600K
+ $—K)
÷ $775,900K
= 0.14
The cash ratio of Fortrea Holdings Inc. appears to have remained relatively stable over the past three quarters, with values of 0.14 in both December 31, 2023, and September 30, 2023, and a slight increase to 0.15 by June 30, 2023. This ratio indicates that for every dollar of current liabilities, the company has $0.14 to $0.15 in cash and cash equivalents available to cover these obligations.
While a higher cash ratio is generally preferred as it signifies a stronger ability to meet short-term liabilities, the current levels suggest that Fortrea Holdings Inc. may have limited liquidity and may face challenges in addressing unexpected cash needs. It is important for the company to carefully manage its cash resources to ensure it can meet its financial obligations and navigate any potential liquidity constraints in the future.
Peer comparison
Dec 31, 2023