Jacobs Solutions Inc. (J)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 926,582 | 1,140,480 | 1,014,250 | 862,424 | 631,068 |
| Short-term investments | US$ in thousands | — | — | — | 347,510 | 451,133 |
| Total current liabilities | US$ in thousands | 3,422,560 | 3,250,840 | 3,209,920 | 2,941,600 | 3,073,710 |
| Cash ratio | 0.27 | 0.35 | 0.32 | 0.41 | 0.35 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($926,582K
+ $—K)
÷ $3,422,560K
= 0.27
The cash ratio of Jacobs Solutions Inc. has fluctuated over the past five years, ranging from 0.27 to 0.41. The cash ratio measures the company's ability to cover its short-term obligations with its available cash and cash equivalents. A higher ratio indicates a stronger capacity to meet short-term financial obligations.
In this case, the decreasing trend in the cash ratio from 0.41 in 2020 to 0.27 in 2023 may indicate a potential liquidity concern. However, a ratio above 0.20 is generally considered acceptable, so Jacobs Solutions Inc. still maintains a reasonable level of liquidity to readily cover its short-term liabilities.
It is important for the company to continue monitoring its cash position and manage its working capital effectively to ensure it can meet its financial obligations in a timely manner. Further analysis of the company's cash flow performance and liquidity management strategies would provide a more comprehensive understanding of its financial health.
Peer comparison
Sep 30, 2023