Harley-Davidson Inc (HOG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,589,610 | 1,533,810 | 1,433,180 | 1,874,740 | 3,257,200 |
| Short-term investments | US$ in thousands | — | — | — | 360 | 47 |
| Total current liabilities | US$ in thousands | 3,557,490 | 3,384,260 | 3,533,910 | 3,342,890 | 3,981,950 |
| Cash ratio | 0.45 | 0.45 | 0.41 | 0.56 | 0.82 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,589,610K
+ $—K)
÷ $3,557,490K
= 0.45
Based on the provided data, Harley-Davidson Inc's cash ratio has shown a decreasing trend over the years. The cash ratio, which compares a company's cash and cash equivalents to its current liabilities, was 0.82 as of December 31, 2020. By December 31, 2024, the cash ratio had decreased to 0.45.
A cash ratio of less than 1 indicates that the company may have difficulty meeting its short-term obligations solely with its available cash and cash equivalents. The declining trend in Harley-Davidson Inc's cash ratio could suggest that the company's liquidity position weakened over the years, potentially raising concerns about its ability to cover immediate liabilities with its existing cash resources. Further investigation into the company's liquidity management and cash flow dynamics may be warranted to understand the factors driving this trend and assess its implications for the company's financial health.
Peer comparison
Dec 31, 2024