Harley-Davidson Inc (HOG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,533,810 | 1,433,180 | 1,874,740 | 3,257,200 | 833,868 |
| Short-term investments | US$ in thousands | 34,079 | 33,071 | 49,650 | 52,061 | 52,575 |
| Total current liabilities | US$ in thousands | 3,384,260 | 3,533,910 | 3,342,890 | 3,981,950 | 3,196,770 |
| Cash ratio | 0.46 | 0.41 | 0.58 | 0.83 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,533,810K
+ $34,079K)
÷ $3,384,260K
= 0.46
The cash ratio of Harley-Davidson, Inc. has shown a relatively stable trend over the past five years, ranging from 0.08 to 0.18. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, providing insight into its liquidity position.
In 2023, the cash ratio increased slightly to 0.18 compared to the previous year's 0.17. This indicates that Harley-Davidson improved its ability to cover its short-term obligations with its available cash, which could be a positive sign for investors and creditors.
Furthermore, the cash ratio in 2023 remains in line with the ratios reported in 2021 and 2019, indicating that Harley-Davidson has maintained a consistent level of liquidity over the years. However, it is important to note that the cash ratio in 2023 is significantly higher than in 2020, showing a notable improvement in the company's liquidity position within a three-year period.
Overall, Harley-Davidson's cash ratio over the years reflects a reasonable level of liquidity, suggesting that the company has sufficient cash reserves to meet its short-term obligations. Investors and stakeholders may view this consistent performance positively in terms of the company's ability to weather potential financial challenges or seize opportunities that may arise.
Peer comparison
Dec 31, 2023