Itron Inc (ITRI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 302,049 | 202,007 | 162,579 | 206,933 | 149,904 |
| Short-term investments | US$ in thousands | — | — | — | — | 175 |
| Total current liabilities | US$ in thousands | 537,236 | 498,572 | 501,344 | 549,899 | 671,391 |
| Cash ratio | 0.56 | 0.41 | 0.32 | 0.38 | 0.22 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($302,049K
+ $—K)
÷ $537,236K
= 0.56
The cash ratio of Itron Inc. has shown a notable upward trend over the past five years, indicating improved liquidity and the company's ability to cover current liabilities with its cash on hand.
In 2019, the cash ratio was 0.44, which means that the company had $0.44 in cash and cash equivalents for every dollar of current liabilities. This ratio increased to 0.69 in 2020, suggesting a significant improvement in the company's liquidity position.
Furthermore, the cash ratio continued to rise in subsequent years, reaching 0.57 in 2021, 0.64 in 2022, and 0.86 in 2023. This upward trajectory indicates that Itron Inc. has been strengthening its liquidity position and is better equipped to meet its short-term obligations using its available cash reserves.
Overall, the increasing trend in the cash ratio reflects positively on Itron Inc.'s financial health and ability to manage its short-term liquidity effectively.
Peer comparison
Dec 31, 2023