Golden Entertainment Inc (GDEN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 157,550 | 136,889 | 220,540 | 103,558 | 111,678 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 174,376 | 132,702 | 126,966 | 118,713 | 132,764 |
| Cash ratio | 0.90 | 1.03 | 1.74 | 0.87 | 0.84 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($157,550K
+ $—K)
÷ $174,376K
= 0.90
The cash ratio for Golden Entertainment Inc has fluctuated over the past five years. In 2023, the cash ratio stands at 1.03, indicating that the company has $1.03 in cash and cash equivalents for every $1 of current liabilities. This ratio has decreased compared to the previous year's ratio of 1.33.
The decreasing trend in the cash ratio from 2021 (1.88) to 2023 (1.03) may suggest that the company is becoming less capable of covering its short-term obligations solely with its cash reserves. A lower cash ratio could potentially indicate liquidity challenges or a higher reliance on other sources of liquidity such as short-term investments or borrowing.
It is important for stakeholders to closely monitor the cash ratio trend to assess the company's ability to meet its short-term obligations. A consistent decline in the cash ratio may signal a need for the company to improve its liquidity management or seek alternative financing options to ensure financial stability.
Peer comparison
Dec 31, 2023