Kelly Services A Inc (KELYA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	125,800	153,700	112,700	223,000	25,800
Short-term investments	US$ in thousands	—	—	264,300	164,200	173,200
Total current liabilities	US$ in thousands	1,019,900	1,128,800	1,095,200	925,600	884,100
Cash ratio		0.12	0.14	0.34	0.42	0.23

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($125,800K + $—K) ÷ $1,019,900K
= 0.12

The cash ratio of Kelly Services, Inc. has fluctuated over the past five years, ranging from 0.12 to 0.31. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In this case, the cash ratio was lowest in 2019 at 0.12 and highest in 2021 at 0.31. The decrease in the cash ratio in 2019 may suggest that the company had relatively lower cash reserves compared to its short-term liabilities. Conversely, the increase in the cash ratio in 2021 indicates an improvement in the company's liquidity position.

Overall, the cash ratio of Kelly Services, Inc. has shown some variability over the years, which may be influenced by factors such as cash management practices, business cycles, or economic conditions. It is important for investors and analysts to monitor the company's cash ratio over time to assess its liquidity and financial health.