Forward Air Corporation (FWRD)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	104,903	121,969	45,822	37,316	40,254
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	384,046	237,094	169,398	164,692	172,052
Cash ratio		0.27	0.51	0.27	0.23	0.23

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($104,903K + $—K) ÷ $384,046K
= 0.27

The cash ratio for Forward Air Corporation has shown variability over the past five years. The ratio was constant at 0.23 at the end of 2020 and 2021, indicating that for every dollar of current liabilities, the company had $0.23 in cash on hand during those years.

In 2022, the cash ratio improved slightly to 0.27, possibly suggesting a strengthening liquidity position. This indicates that the company had $0.27 in cash for every dollar of current liabilities, reflecting a better ability to cover short-term obligations with cash reserves.

The cash ratio experienced a notable increase to 0.51 by the end of 2023, indicating a significant improvement in liquidity. This suggests that the company had strengthened its ability to meet short-term liabilities without relying on additional financing or asset liquidation.

However, by the end of 2024, the cash ratio decreased to 0.27, reverting back to the same level as in 2022. This may indicate a potential decrease in cash reserves relative to current liabilities compared to the prior year.

Overall, the trend in the cash ratio for Forward Air Corporation reflects fluctuations in the company's liquidity position over the years, with improvements in some periods and slight declines in others. It is essential for the company to maintain a healthy cash ratio to ensure it can meet its short-term obligations effectively.