IDEX Corporation (IEX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 534,300 | 430,200 | 855,400 | 1,025,900 | 632,581 |
| Short-term investments | US$ in thousands | — | — | 45,300 | — | — |
| Total current liabilities | US$ in thousands | 500,300 | 543,600 | 480,000 | 399,000 | 357,877 |
| Cash ratio | 1.07 | 0.79 | 1.88 | 2.57 | 1.77 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($534,300K
+ $—K)
÷ $500,300K
= 1.07
The cash ratio of Idex Corporation has exhibited fluctuations over the past five years, ranging from a low of 0.89 in 2022 to a high of 2.69 in 2020. The ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents, with a higher ratio indicating a better capacity to meet short-term obligations. In this case, the company's cash ratio has generally been above 1, which suggests that Idex Corporation has had sufficient cash on hand to cover its current liabilities throughout the period. However, the decreasing trend in the cash ratio from 2020 to 2022 may indicate a potential decrease in liquidity or excess use of cash for other purposes. It would be important to further investigate the reasons behind these fluctuations to assess the overall financial health and liquidity position of the company.
Peer comparison
Dec 31, 2023