Kadant Inc (KAI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 94,660 | 103,832 | 76,371 | 91,186 | 65,682 |
| Short-term investments | US$ in thousands | — | 212,906 | 131 | — | — |
| Total current liabilities | US$ in thousands | 191,565 | 214,409 | 213,461 | 221,497 | 134,688 |
| Cash ratio | 0.49 | 1.48 | 0.36 | 0.41 | 0.49 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($94,660K
+ $—K)
÷ $191,565K
= 0.49
The cash ratio of Kadant Inc has shown fluctuations over the past five years, ranging from 0.36 to 1.48.
In 2020, the cash ratio was 0.49, indicating that for every dollar of current liabilities, the company had $0.49 in cash and cash equivalents available to cover its short-term obligations.
The ratio declined to 0.41 in 2021, suggesting a slight decrease in the company's ability to meet its short-term obligations with its available cash resources.
However, the following year, in 2022, the cash ratio dropped further to 0.36, signaling a potential liquidity challenge for Kadant Inc as the ratio fell below 1.
The situation improved significantly in 2023, with the cash ratio surging to 1.48, indicating a substantial increase in the company's liquidity position, as it now had $1.48 in cash for every dollar of current liabilities.
By the end of 2024, the cash ratio returned to its 2020 level of 0.49, showing a stabilization of the company's liquidity position compared to the preceding year.
Overall, the fluctuating cash ratio of Kadant Inc over the five-year period suggests varying levels of liquidity and highlights the importance of monitoring cash reserves to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024