Knowles Cor (KN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 87,300 | 48,200 | 68,900 | 147,800 | 78,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 164,600 | 99,100 | 166,200 | 297,300 | 151,500 |
| Cash ratio | 0.53 | 0.49 | 0.41 | 0.50 | 0.52 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($87,300K
+ $—K)
÷ $164,600K
= 0.53
The cash ratio of Knowles Corp has shown a relatively stable trend over the past five years, ranging from 0.48 to 0.59. This ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
The consistent values of the cash ratio suggest that Knowles Corp has maintained a healthy level of cash reserves relative to its current obligations. A ratio above 1.0 would indicate that the company has more cash on hand than its short-term liabilities, while a ratio below 1.0 signifies that the company may need to rely on other sources of liquidity to meet its immediate payment obligations.
Although the cash ratio has slightly fluctuated from year to year, remaining within a narrow range around the median value of 0.57, it appears that Knowles Corp has managed its liquidity effectively and has been able to sustain a comfortable level of cash liquidity over the years. This stability in the cash ratio reflects positively on the company's financial health and its ability to meet its short-term financial obligations with readily available cash resources.
Peer comparison
Dec 31, 2023