LCI Industries (LCII)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	66,157	47,499	62,896	51,821	35,359
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	394,992	421,300	627,216	416,394	271,258
Cash ratio		0.17	0.11	0.10	0.12	0.13

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($66,157K + $—K) ÷ $394,992K
= 0.17

The cash ratio of LCI Industries has exhibited some variation over the past five years. The ratio has been relatively stable, ranging between 0.24 and 0.35 during this period. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

A cash ratio of 0.34 in 2023 indicates that for every dollar of current liabilities, LCI Industries has $0.34 in cash and cash equivalents available. While the ratio has decreased slightly from the previous year, it remains at a level that suggests the company has adequate liquidity to meet its short-term obligations.

It is important to note that a cash ratio of 0.34 may be considered healthy, as it indicates that LCI Industries has a reasonable buffer of liquid assets to manage its short-term financial commitments. However, further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's liquidity position and financial health.