Greenbrier Companies Inc (GBX)
Cash ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 351,800 | 281,700 | 543,000 | 646,800 | 833,800 |
| Short-term investments | US$ in thousands | -54,500 | 34,900 | 93 | — | — |
| Total current liabilities | US$ in thousands | 1,017,000 | 789,700 | 1,021,700 | 941,981 | 815,406 |
| Cash ratio | 0.29 | 0.40 | 0.53 | 0.69 | 1.02 |
August 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($351,800K
+ $-54,500K)
÷ $1,017,000K
= 0.29
The cash ratio of Greenbrier Companies Inc has been gradually decreasing over the past five years. In 2020, the cash ratio was at its highest at 1.02, indicating that the company had more than $1 in cash and cash equivalents for every $1 of current liabilities. However, this ratio has declined steadily over the years to 0.29 in 2024.
A cash ratio of 0.29 in 2024 means that Greenbrier Companies Inc has $0.29 in cash and cash equivalents for every $1 of current liabilities. This suggests that the company may have limited liquidity to meet its short-term obligations solely with cash on hand. A decreasing trend in the cash ratio could potentially indicate challenges in managing cash flow or a shift in the company's financial strategy towards investing in assets other than cash.
It is important for investors and stakeholders to monitor the company's cash management practices and liquidity position to ensure that Greenbrier Companies Inc can meet its short-term financial obligations effectively.
Peer comparison
Aug 31, 2024