Chart Industries Inc (GTLS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 188,300 | 663,600 | 122,200 | 125,100 | 119,000 |
| Short-term investments | US$ in thousands | — | — | — | 73,600 | — |
| Total current liabilities | US$ in thousands | 1,866,200 | 1,081,600 | 693,900 | 634,800 | 378,300 |
| Cash ratio | 0.10 | 0.61 | 0.18 | 0.31 | 0.31 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($188,300K
+ $—K)
÷ $1,866,200K
= 0.10
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Chart Industries Inc's cash ratio has varied over the past five years. In 2023, the cash ratio decreased significantly to 0.21, signaling a decline in the company's liquidity position compared to the previous year. This suggests that Chart Industries Inc may have lower cash reserves relative to its short-term obligations in 2023.
On the other hand, in 2022, the cash ratio was notably high at 0.91, indicating a strong ability to cover short-term liabilities with cash on hand. This implies that in 2022, Chart Industries Inc had a substantial amount of cash readily available to meet its immediate financial obligations.
In 2021, the cash ratio was 0.29, which was relatively lower compared to 2022 but higher than 2023. This suggests that the company's liquidity position in 2021 was moderate, with a sufficient level of cash to cover short-term liabilities.
Similarly, in 2020 and 2019, the cash ratios were 0.27 and 0.44, respectively. These ratios indicate that Chart Industries Inc had a reasonable liquidity position in both years, with enough cash reserves to meet short-term obligations.
Overall, fluctuations in the cash ratio of Chart Industries Inc over the past five years suggest varying levels of liquidity and the company's ability to manage short-term financial commitments effectively. Investors and stakeholders may consider these trends when assessing the company's financial health and risk management capabilities.