Graco Inc (GGG)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 675,336 764,453 666,006 622,728 537,951 525,785 520,633 395,313 339,196 414,827 413,359 380,487 624,302 603,828 482,787 460,616 378,909 424,674 432,708 456,656
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 405,808 360,373 362,335 351,687 395,200 395,888 489,338 381,698 399,917 430,768 424,058 402,313 506,792 427,214 358,724 323,520 321,389 326,453 310,380 311,763
Cash ratio 1.66 2.12 1.84 1.77 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

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 shown fluctuations over the past few years. The cash ratio, which measures the company's ability to cover its short-term obligations with its cash and cash equivalents, was relatively stable around 1.30 to 1.40 in 2020 and 2021. However, there was a slight decline in the cash ratio in the first half of 2022, dropping to around 0.95 to 0.97. This indicates a potential decrease in the company's liquidity during this period.

Subsequently, there was an improvement in the cash ratio in the second half of 2022 and throughout 2023, with the ratio increasing to around 1.30 to 1.40 again. This indicates an improvement in Graco Inc's ability to cover its short-term obligations with its cash holdings.

In 2024, the cash ratio experienced significant growth, reaching 2.12 by September 30, 2024. This indicates that Graco Inc had a substantial increase in its cash holdings relative to its short-term obligations, signaling a strong liquidity position at the end of 2024.

Overall, the cash ratio of Graco Inc reflects variability in the company's liquidity position over the analyzed period, with fluctuations that suggest both challenges and improvements in managing short-term cash obligations.