Graco Inc (GGG)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 675,336 537,951 339,196 624,302 378,909
Short-term investments US$ in thousands — — — — —
Total current liabilities US$ in thousands 405,808 395,200 399,917 506,792 321,389
Cash ratio 1.66 1.36 0.85 1.23 1.18

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($675,336K + $—K) ÷ $405,808K
= 1.66

The cash ratio of Graco Inc has fluctuated over the past five years. Starting at 1.18 on December 31, 2020, it increased to 1.23 by the end of 2021. However, there was a notable decrease in the cash ratio to 0.85 by December 31, 2022. The ratio then rebounded significantly to 1.36 by the end of 2023, indicating a healthier position in terms of cash reserves. By December 31, 2024, the cash ratio further improved to 1.66, suggesting that Graco Inc has a strong ability to cover its short-term liabilities with cash on hand. Overall, the trend in the cash ratio has shown some volatility but has generally been on an upward trajectory in recent years.