Kelly Services A Inc (KELYA)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	125,800	117,200	124,800	111,700	153,700	122,400	133,900	230,300	112,700	43,500	64,400	239,400	223,000	248,200	216,200	48,300	25,800	22,800	37,200	30,900
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	264,300	—	—	—	164,200	145,800	127,200	96,800	173,200	174,900	213,700	147,200
Total current liabilities	US$ in thousands	1,019,900	1,025,300	1,054,900	1,050,900	1,128,800	1,143,000	1,161,000	1,196,300	1,095,200	1,078,000	1,053,900	962,900	925,600	796,500	791,400	842,800	884,100	900,000	931,100	973,400
Cash ratio		0.12	0.11	0.12	0.11	0.14	0.11	0.12	0.19	0.34	0.04	0.06	0.25	0.42	0.49	0.43	0.17	0.23	0.22	0.27	0.18

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 shown a declining trend over the past four quarters, dropping from 0.25 in Q1 2022 to 0.17 in Q4 2023. This indicates a decrease in the company's ability to cover its short-term liabilities with cash and cash equivalents. While the cash ratio fluctuated slightly between 0.17 and 0.20 throughout the quarters of 2022 and 2023, it remained below the initial value observed in Q1 2022.

A cash ratio of 0.17 in Q4 2023 means that for every dollar of current liabilities, Kelly Services, Inc. holds $0.17 in cash and cash equivalents. This suggests that the company may have limited liquidity and may potentially face challenges in meeting its short-term obligations solely from its available cash resources. Management should carefully monitor and manage the company's cash position to ensure it remains sufficient to support its operations and financial commitments.