Green Plains Renewable Energy Inc (GPRE)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	349,574	444,661	426,220	233,860	245,977
Short-term investments	US$ in thousands	—	0	124,859	3,994	—
Total current liabilities	US$ in thousands	384,962	486,922	471,804	452,556	541,791
Cash ratio		0.91	0.91	1.17	0.53	0.45

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($349,574K + $—K) ÷ $384,962K
= 0.91

The cash ratio of Green Plains Inc has shown fluctuations over the past five years. In 2023, the cash ratio improved to 1.02, indicating that the company had $1.02 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong ability to meet short-term financial obligations using its cash on hand.

Compared to the previous year, the cash ratio increased from 0.99 in 2022 to 1.02 in 2023, demonstrating an enhanced liquidity position. This could be a positive sign of improved cash management or efficient working capital management.

In 2021, the cash ratio was relatively high at 1.26, indicating a robust liquidity position with $1.26 in cash available for every $1 of current liabilities. This could suggest a conservative approach to managing liquidity and a strong ability to cover short-term obligations.

In 2020, the cash ratio was lower at 0.61, which may indicate a decrease in cash reserves relative to current liabilities. This could raise concerns about the company's ability to meet short-term obligations solely from its cash resources.

Lastly, in 2019, the cash ratio was even lower at 0.51, reflecting a weaker liquidity position compared to the following years. This could suggest a need for the company to focus on improving its cash reserves or managing its current liabilities more effectively.

Overall, while the cash ratio of Green Plains Inc has fluctuated over the years, it is important for the company to maintain a balance between cash reserves and current liabilities to ensure adequate liquidity and financial stability.