IDEX Corporation (IEX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 620,800 | 534,300 | 430,200 | 855,400 | 1,025,850 |
| Short-term investments | US$ in thousands | — | 0 | — | 45,300 | — |
| Total current liabilities | US$ in thousands | 629,700 | 500,300 | 543,600 | 480,000 | 399,058 |
| Cash ratio | 0.99 | 1.07 | 0.79 | 1.88 | 2.57 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($620,800K
+ $—K)
÷ $629,700K
= 0.99
The cash ratio for IDEX Corporation has shown a declining trend over the past five years, moving from 2.57 in December 2020 to 0.99 in December 2024. This indicates a decrease in the company's ability to cover its short-term liabilities with its cash and cash equivalents.
A cash ratio above 1 is generally considered healthy, as it means the company has enough cash to cover its short-term obligations. However, IDEX Corporation's cash ratio has fallen below 1 in the last two years, suggesting a potential liquidity challenge.
It is essential for investors and stakeholders to monitor the company's cash position closely, as a low cash ratio could indicate a risk of insolvency or an inability to meet upcoming financial obligations. Further analysis of the company's cash management practices and strategies may be necessary to address this concerning trend.
Peer comparison
Dec 31, 2024