Geo Group Inc (GEO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 93,971 | 95,073 | 506,491 | 283,524 | 32,463 |
| Short-term investments | US$ in thousands | — | — | — | 26,740 | 32,418 |
| Total current liabilities | US$ in thousands | 437,464 | 437,212 | 378,842 | 411,296 | 395,928 |
| Cash ratio | 0.21 | 0.22 | 1.34 | 0.75 | 0.16 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($93,971K
+ $—K)
÷ $437,464K
= 0.21
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 short-term obligations.
Looking at the cash ratio trend for Geo Group, Inc. over the past five years, we can observe fluctuations in the company's liquidity position. In 2021, the cash ratio was significantly higher at 1.46, suggesting a robust ability to cover short-term liabilities with available cash.
However, in 2020 and 2019, the cash ratios were lower at 0.77 and 0.18 respectively, indicating a relatively weaker liquidity position during those years. The consistent cash ratio of 0.32 in 2023 and 2022 suggests some stability in the company's ability to meet short-term obligations with its cash reserves.
Overall, Geo Group, Inc. has shown varying levels of liquidity over the past five years, with the highest cash ratio observed in 2021. It would be important to monitor future trends in the cash ratio to assess the company's ongoing liquidity position and financial health.
Peer comparison
Dec 31, 2023