Itron Inc (ITRI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,051,240 | 302,049 | 202,007 | 162,579 | 206,933 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 528,265 | 537,236 | 498,572 | 501,344 | 549,899 |
| Cash ratio | 1.99 | 0.56 | 0.41 | 0.32 | 0.38 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,051,240K
+ $—K)
÷ $528,265K
= 1.99
The cash ratio, which is a measure of a company's ability to cover its short-term liabilities with its readily available cash or cash equivalents, for Itron Inc has exhibited some fluctuations over the years.
As of December 31, 2020, the cash ratio was 0.38, indicating that the company had $0.38 of cash and cash equivalents for every $1 of its current liabilities. This suggests a relatively moderate liquidity position at that time.
The cash ratio decreased to 0.32 by December 31, 2021, signaling a decline in the company's ability to cover its short-term obligations with its available cash reserves. However, by December 31, 2022, the cash ratio improved to 0.41, indicating a slight enhancement in the company's liquidity position.
The trend of improving liquidity continued in the following years, with the cash ratio increasing to 0.56 by December 31, 2023, and significantly rising to 1.99 by December 31, 2024. A cash ratio of 1.99 implies that the company had almost $2 in cash and cash equivalents for every $1 of its current liabilities, suggesting a strong liquidity position.
Overall, the cash ratio for Itron Inc has shown variability over the years, with fluctuations indicating changes in the company's ability to meet its short-term obligations using its available cash resources. The upward trend in the cash ratio in the later years suggests an improvement in the company's liquidity position and its ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2024