Graham Holdings Co (GHC)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	169,897	169,319	145,886	413,991	200,165
Short-term investments	US$ in thousands	690,153	609,921	809,997	573,102	585,080
Total current liabilities	US$ in thousands	1,229,680	1,145,170	1,166,340	949,646	1,041,870
Cash ratio		0.70	0.68	0.82	1.04	0.75

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($169,897K + $690,153K) ÷ $1,229,680K
= 0.70

The cash ratio of Graham Holdings Co., a measure of its ability to cover its short-term liabilities with its available cash and cash equivalents, has fluctuated over the past five years. The company's cash ratio stood at 0.80 as of December 31, 2023, indicating that it had $0.80 in cash and cash equivalents for every $1 of current liabilities. This represented a decrease from the previous year's ratio of 0.76.

In the prior year, the cash ratio was 0.90, higher than the current period, suggesting that the company had a stronger liquidity position in 2022 compared to 2023. The highest cash ratio in the last five years was observed in 2020 at 1.14, signaling that the company had ample cash reserves to cover its short-term obligations at that time.

However, the cash ratio fell to 0.87 in 2019, indicating a slight decline in liquidity compared to 2023. Overall, the trend in Graham Holdings Co.'s cash ratio reveals fluctuations in its ability to meet short-term liabilities with available cash and cash equivalents over the past five years.