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.
Peer comparison
Dec 31, 2023