Graco Inc (GGG)

Cash ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash and cash equivalents US$ in thousands 537,951 525,785 520,633 395,313 339,196 414,827 413,359 380,487 624,302 603,828 482,787 460,616 378,909 424,674 432,708 456,656 220,973 177,306 180,883 119,711
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 395,200 395,888 489,338 381,698 399,917 430,768 424,058 402,313 506,792 427,214 358,724 323,520 321,389 326,453 310,380 311,763 285,322 287,527 359,602 354,044
Cash ratio 1.36 1.33 1.06 1.04 0.85 0.96 0.97 0.95 1.23 1.41 1.35 1.42 1.18 1.30 1.39 1.46 0.77 0.62 0.50 0.34

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($537,951K + $—K) ÷ $395,200K
= 1.36

The cash ratio for Graco Inc has shown some fluctuations over the past several quarters. The cash ratio is a measure of 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 cover these obligations.

In the most recent quarter, as of December 31, 2023, Graco Inc's cash ratio stood at 1.36, indicating that the company had $1.36 in cash and cash equivalents for every $1 of its current liabilities. This suggests a healthy liquidity position.

Looking at the trend, the cash ratio has generally been increasing from the beginning of 2022 through mid-2023 before experiencing a slight decline in the most recent quarters. This could indicate fluctuations in the company's cash position relative to its short-term liabilities.

It is important to note that while a high cash ratio may signify a strong liquidity position, excessively high levels of cash may also imply inefficient asset utilization. Therefore, it is essential for Graco Inc to manage its cash levels effectively to strike a balance between liquidity and profitability.