Kirby Corporation (KEX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	32,577	80,577	34,813	80,338	24,737
Short-term investments	US$ in thousands	—	—	—	2,689	—
Total current liabilities	US$ in thousands	675,795	642,197	543,772	466,032	514,115
Cash ratio		0.05	0.13	0.06	0.18	0.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($32,577K + $—K) ÷ $675,795K
= 0.05

The cash ratio of Kirby Corp. has fluctuated over the past five years, ranging from 0.15 to 0.30. The ratio measures the ability of the company to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as more cash is available to meet immediate obligations.

In 2020, Kirby Corp. had the highest cash ratio of 0.30, suggesting a robust liquidity position during that period. This may have been due to effective cash management practices or higher cash reserves. However, the cash ratio decreased significantly in 2021 to 0.19, indicating a potential decrease in the company's ability to cover its short-term liabilities solely with cash.

In 2022, there was a slight improvement in the cash ratio to 0.24, but it remained below the levels seen in 2020. The most recent data for 2023 shows a further decline in the cash ratio to 0.15, signaling a decreased liquidity position compared to the previous year.

Overall, the downward trend in the cash ratio over the past few years suggests a potential concern regarding Kirby Corp.'s ability to meet its short-term obligations with its available cash on hand. Further analysis of the company's cash management practices and overall financial health would be necessary to gain a more comprehensive understanding of its liquidity position.