Innovex International, Inc (INVX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 73,278 | 7,406 | 8,416 | 9,736 | 345,955 |
| Short-term investments | US$ in thousands | — | 25,908 | 32,232 | — | — |
| Total current liabilities | US$ in thousands | 162,658 | 117,703 | 85,020 | 69,571 | 85,512 |
| Cash ratio | 0.45 | 0.28 | 0.48 | 0.14 | 4.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($73,278K
+ $—K)
÷ $162,658K
= 0.45
The cash ratio of Innovex International, Inc. over the analyzed period exhibits significant fluctuations, indicative of varying liquidity positions at different points in time. As of December 31, 2020, the company's cash ratio was notably high at 4.05, suggesting that the company held a substantial amount of cash and cash equivalents relative to its current liabilities, thereby reflecting an ample liquidity cushion at that juncture.
By December 31, 2021, the cash ratio experienced a dramatic decline to 0.14. This substantial reduction implies a significant decrease in cash holdings relative to current liabilities, which could suggest increased utilization of cash for operations, investments, or debt payments, or possibly a strategic shift in liquidity management.
In the subsequent year, December 31, 2022, the cash ratio partially recovered to 0.48. This increase indicates an improvement in liquidity position, with cash holdings again becoming more adequate in relation to current liabilities, though it remained well below the levels observed in 2020.
Continuing this trend, the cash ratio slightly decreased to 0.28 by December 31, 2023. This decline may suggest a marginal reduction in liquidity or increased current liabilities, potentially reflecting changes in working capital management or operational cash flows.
Finally, as of December 31, 2024, the cash ratio rose again to 0.45. This upward movement denotes an enhancement in cash holdings relative to current liabilities, moving closer to the levels observed two years prior, and indicating a somewhat improved liquidity buffer.
Overall, the cash ratio of Innovex International, Inc. demonstrates periods of volatility, with a peak in 2020, a significant dip in 2021, followed by partial recovery in subsequent years. These fluctuations suggest variability in cash management and operational cash flow generation, which should be analyzed further in conjunction with other liquidity and solvency ratios to fully understand the company's liquidity health and cash management strategies.
Peer comparison
Dec 31, 2024