Forward Air Corporation (FWRD)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	121,969	45,822	37,316	40,254	64,749
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	237,094	169,398	164,692	171,620	137,164
Cash ratio		0.51	0.27	0.23	0.23	0.47

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($121,969K + $—K) ÷ $237,094K
= 0.51

The cash ratio of Forward Air Corporation has shown some fluctuation over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In 2023, the cash ratio improved significantly to 0.51 compared to the previous year, indicating that the company had sufficient cash to cover its short-term obligations. This improvement may suggest better liquidity management or increased cash reserves.

In 2022, the cash ratio was 0.27, showing a decline from the previous year. This decrease may raise some concerns about the company's liquidity position and its ability to meet short-term obligations with its available cash.

Similarly, in 2021 and 2020, the cash ratio remained the same at 0.23, indicating that the company maintained a consistent level of liquidity to cover short-term liabilities during these years.

In 2019, the cash ratio was relatively high at 0.47, suggesting that the company had a strong cash position compared to its short-term obligations.

Overall, the trend in the cash ratio for Forward Air Corporation shows some variability over the years, with improvements in liquidity in some years and slight declines in others. It is important for the company to continue monitoring its cash position to ensure it can effectively meet its short-term financial obligations.