Forward Air Corporation (FWRD)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	121,969	18,843	18,281	32,028	45,822	46,846	47,386	61,630	37,316	51,930	50,844	24,396	40,254	42,990	80,916	77,245	64,749	34,824	14,777	42,165
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	237,094	190,441	169,226	165,770	169,398	179,559	167,460	187,944	164,692	158,466	169,271	169,133	171,620	157,133	146,852	143,328	137,164	139,775	136,635	116,646
Cash ratio		0.51	0.10	0.11	0.19	0.27	0.26	0.28	0.33	0.23	0.33	0.30	0.14	0.23	0.27	0.55	0.54	0.47	0.25	0.11	0.36

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 exhibited fluctuations over the past few quarters. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents.

Observing the data, we note that the cash ratio has ranged from a low of 0.10 in September 2023 to a high of 0.55 in June 2020. The trend indicates some variability in the company's immediate liquidity position.

The recent cash ratio of 0.51 as of December 31, 2023, suggests that for every dollar of current liabilities, Forward Air Corporation had $0.51 in cash or cash equivalents available. This implies that the company has a relatively stronger liquidity position to meet its short-term obligations compared to the previous quarter, where the cash ratio was lower at 0.10.

However, it is crucial to analyze the industry benchmarks and compare with the company's historical data to gain a deeper understanding of its liquidity management. Further, monitoring this ratio over multiple periods can provide insights into the company's cash management practices and financial health.