JBTMarel Corp (JBTM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,228,400 | 483,300 | 71,700 | 78,800 | 47,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 535,500 | 484,400 | 624,000 | 549,900 | 457,500 |
| Cash ratio | 2.29 | 1.00 | 0.11 | 0.14 | 0.10 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,228,400K
+ $—K)
÷ $535,500K
= 2.29
The cash ratio of JBTMarel Corp has displayed significant variation over the observed period from December 31, 2020, to December 31, 2024. At the end of 2020, the company’s cash ratio was 0.10, indicating that its available cash and cash equivalents were equivalent to 10% of its current liabilities. This modest level suggests a limited cushion for immediate liquidity needs at that time.
By the end of 2021, the cash ratio increased to 0.14, reflecting a slight improvement in the company’s ability to cover its short-term obligations with cash and cash equivalents, although it remained relatively conservative. In 2022, the ratio declined again to 0.11, signaling a slight reduction in liquidity, yet still maintaining a conservative position.
A notable change occurred by the end of 2023, when the cash ratio surged to 1.00. This indicates that the company's cash and cash equivalents exactly matched its current liabilities, representing a significant increase in immediate liquidity and suggesting that the company was well-positioned to meet its short-term obligations without reliance on other current assets.
The most pronounced change was observed by the end of 2024, where the cash ratio further escalated to 2.29. This implies that JBTMarel Corp held cash and cash equivalents more than twice its current liabilities, indicating a highly conservative liquidity stance. Such a high cash ratio suggests that the company was in a robust position to cover short-term liabilities solely with its cash holdings, potentially reflecting a strategic liquidity management approach, an accumulation of excess cash reserves, or a temporary reduction in current liabilities.
Overall, the progression of the cash ratio from 2020 through 2024 demonstrates a trend toward increasingly conservative liquidity management. The substantial rise in 2023 and 2024 highlights a transition from a modest liquidity position to one of significant cash reserves relative to current liabilities, which could have implications for the company’s operational flexibility, investment capacity, and financial strategy.
Peer comparison
Dec 31, 2024