Huntington Ingalls Industries Inc (HII)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 430,000 | 467,000 | 627,000 | 512,000 | 75,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,032,000 | 2,895,000 | 2,427,000 | 2,226,000 | 1,890,000 |
| Cash ratio | 0.14 | 0.16 | 0.26 | 0.23 | 0.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($430,000K
+ $—K)
÷ $3,032,000K
= 0.14
The cash ratio of Huntington Ingalls Industries Inc has fluctuated over the past five years, ranging from 0.58 in 2019 to 0.82 in 2021. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio stands at 0.68, indicating that for every dollar of current liabilities, the company has $0.68 in cash and cash equivalents available. This suggests that the company has a moderate level of liquidity to meet its short-term obligations.
The upward trend in the cash ratio from 2020 to 2021 shows an improvement in the company's liquidity position, reaching its peak in 2021. However, there was a slight decrease in 2022 and a further decrease in 2023.
Overall, while the company's cash ratio has shown some volatility, it is important to consider other liquidity measures and factors affecting the company's cash position to gain a more comprehensive understanding of its financial health and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023