Graham Holdings Co (GHC)

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	260,852	244,361	187,615	130,860	201,891	159,981	111,738	123,469	169,319	149,773	126,368	132,224	145,886	133,882	114,802	350,135	413,991	295,672	260,247	178,646
Short-term investments	US$ in thousands	858,743	831,760	822,034	802,943	697,028	672,346	661,306	616,379	622,408	610,756	662,831	816,966	824,445	779,073	765,740	715,580	587,582	506,246	444,742	451,380
Total current liabilities	US$ in thousands	1,199,800	1,331,860	1,208,040	1,241,750	1,229,680	1,151,850	1,108,390	1,128,290	1,174,010	1,141,060	1,020,420	1,042,890	1,166,340	1,020,610	902,602	927,734	949,646	915,459	818,104	937,379
Cash ratio		0.93	0.81	0.84	0.75	0.73	0.72	0.70	0.66	0.67	0.67	0.77	0.91	0.83	0.89	0.98	1.15	1.05	0.88	0.86	0.67

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($260,852K + $858,743K) ÷ $1,199,800K
= 0.93

The cash ratio of Graham Holdings Co has fluctuated over the period from March 31, 2020, to December 31, 2024, ranging from a low of 0.66 to a high of 1.15. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The trend indicates some variability in the company's liquidity position. A higher cash ratio suggests a stronger ability to meet short-term obligations using available cash resources alone, which can indicate a lower risk of liquidity problems. Conversely, a lower cash ratio may signal a potential difficulty in meeting short-term obligations solely through cash holdings.

Overall, Graham Holdings Co's cash ratio has shown some volatility but has generally remained within a moderate range, indicating a reasonable level of liquidity management over the period under review. Further analysis and comparison with industry benchmarks could provide additional insights into the company's liquidity position.