Knowles Cor (KN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 130,100 | 87,300 | 48,200 | 68,900 | 147,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 197,600 | 164,600 | 99,100 | 166,200 | 297,300 |
| Cash ratio | 0.66 | 0.53 | 0.49 | 0.41 | 0.50 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($130,100K
+ $—K)
÷ $197,600K
= 0.66
The cash ratio for Knowles Cor has exhibited fluctuations over the past five years, ranging from 0.41 to 0.66. The ratio indicates the company's ability to cover its short-term obligations solely with its cash and cash equivalents.
In 2020, the cash ratio was 0.50, reflecting a moderate ability to meet short-term obligations with readily available cash. This ratio decreased to 0.41 by the end of 2021, indicating a potential decrease in liquidity or an increase in short-term liabilities that may need to be addressed.
However, there was an improvement in liquidity in 2022, with the cash ratio increasing to 0.49, suggesting a better ability to cover short-term obligations. This positive trend continued into 2023, as the cash ratio further improved to 0.53, indicating a stronger liquidity position for the company.
By the end of 2024, Knowles Cor's cash ratio significantly improved to 0.66, signaling a substantial increase in the company's ability to meet short-term obligations with cash on hand. This could be attributed to effective cash management practices or a reduction in short-term liabilities.
Overall, fluctuations in the cash ratio suggest changes in the company's liquidity position over the years, emphasizing the importance of monitoring cash levels relative to short-term obligations.
Peer comparison
Dec 31, 2024