Geo Group Inc (GEO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 76,896 | 93,971 | 95,073 | 506,491 | 283,524 |
| Short-term investments | US$ in thousands | — | — | — | — | 26,740 |
| Total current liabilities | US$ in thousands | 340,223 | 437,464 | 437,212 | 378,842 | 411,296 |
| Cash ratio | 0.23 | 0.21 | 0.22 | 1.34 | 0.75 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($76,896K
+ $—K)
÷ $340,223K
= 0.23
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations.
For Geo Group Inc, the cash ratio has shown fluctuations over the years:
- In December 31, 2020, the cash ratio was 0.75, indicating that for every dollar of current liabilities, the company had $0.75 in cash and cash equivalents.
- By December 31, 2021, the cash ratio improved to 1.34, showing a significant increase in the company's liquidity position.
- However, in the following years, the cash ratio decreased significantly to 0.22 in December 31, 2022, 0.21 in December 31, 2023, and then slightly increased to 0.23 by December 31, 2024.
The decreasing trend in the cash ratio from 2022 to 2024 might raise concerns about Geo Group Inc's liquidity position and ability to cover short-term obligations with available cash. It is important for the company to manage its cash effectively and consider strategies to improve its liquidity position in the future.
Peer comparison
Dec 31, 2024