Genpact Limited (G)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 583,670 | 646,765 | 899,458 | 680,440 | 467,096 |
| Short-term investments | US$ in thousands | — | 5,372 | 5,839 | 8,774 | 1,784 |
| Total current liabilities | US$ in thousands | 1,317,930 | 1,103,320 | 1,308,800 | 1,202,640 | 910,211 |
| Cash ratio | 0.44 | 0.59 | 0.69 | 0.57 | 0.52 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($583,670K
+ $—K)
÷ $1,317,930K
= 0.44
The cash ratio of Genpact Ltd has shown some fluctuations over the past five years, ranging from 0.59 to 0.79. In general, the cash ratio measures a company's ability to cover its short-term obligations with its most liquid assets, cash, and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term liabilities without relying on external financing or liquidating other assets.
It is evident that Genpact's cash ratio peaked in 2021 at 0.79 and has somewhat decreased in the subsequent years, reaching 0.59 by the end of 2023. This downward trend may indicate a decrease in the company's ability to cover its short-term obligations solely with its available cash and cash equivalents.
However, it is essential to consider the industry benchmarks and specific business circumstances to draw conclusions about the company's financial health solely based on the cash ratio. Further analysis of Genpact's liquidity position, operating cash flows, and overall financial performance would provide a more holistic view of its financial stability and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023