KBR Inc (KBR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 304,000 | 389,000 | 370,000 | 436,000 | 712,000 |
| Short-term investments | US$ in thousands | — | — | 2,000 | — | — |
| Total current liabilities | US$ in thousands | 1,572,000 | 1,821,000 | 1,875,000 | 1,455,000 | 1,501,000 |
| Cash ratio | 0.19 | 0.21 | 0.20 | 0.30 | 0.47 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($304,000K
+ $—K)
÷ $1,572,000K
= 0.19
The cash ratio of KBR Inc has been declining gradually over the past five years, decreasing from 0.47 in 2019 to 0.19 in 2023. This indicates a decreasing ability of the company to cover its short-term liabilities using only its available cash and cash equivalents. The decreasing trend may suggest that KBR Inc is becoming less liquid and may face challenges in meeting its immediate financial obligations solely from its cash reserves. It would be beneficial for the company to closely monitor its liquidity position and consider strategies to improve its cash reserves to ensure financial stability in the future.
Peer comparison
Dec 31, 2023