Grocery Outlet Holding Corp (GO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 62,828 | 114,987 | 102,728 | 140,085 | 105,326 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 349,624 | 383,965 | 280,514 | 237,906 | 232,646 |
| Cash ratio | 0.18 | 0.30 | 0.37 | 0.59 | 0.45 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($62,828K
+ $—K)
÷ $349,624K
= 0.18
The cash ratio of Grocery Outlet Holding Corp has fluctuated over the years based on the available data provided. As of December 31, 2020, the company had a cash ratio of 0.45, indicating that it had $0.45 in cash and cash equivalents for every $1 of current liabilities.
The cash ratio improved to 0.59 by December 31, 2021, suggesting an increase in the company's ability to cover its short-term obligations with its readily available cash. However, the ratio declined in the following years, reaching 0.37 by December 31, 2022, 0.30 by December 31, 2023, and further dropped to 0.18 by December 31, 2024.
A decreasing trend in the cash ratio could signify a potential liquidity concern as the company may have a lower proportion of cash to meet its short-term financial obligations. It is essential for Grocery Outlet Holding Corp to closely monitor and manage its liquidity position to ensure sufficient cash reserves to fulfill its near-term liabilities and operational needs.
Peer comparison
Dec 31, 2024