Leidos Holdings Inc (LDOS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 777,000 | 516,000 | 727,000 | 524,000 | 668,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,990,000 | 3,947,000 | 3,229,000 | 2,907,000 | 2,333,000 |
| Cash ratio | 0.26 | 0.13 | 0.23 | 0.18 | 0.29 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($777,000K
+ $—K)
÷ $2,990,000K
= 0.26
The cash ratio of Leidos Holdings Inc shows a trend of fluctuation over the past five years. In 2023, the cash ratio increased to 0.26 from 0.13 in 2022, indicating a significant improvement in the company's ability to cover its short-term obligations with cash and cash equivalents. This improvement suggests that the company may have strengthened its liquidity position during the year.
Comparing to previous years, the cash ratio in 2023 is higher than in 2021 and 2020 but lower than in 2019, indicating some volatility in the company's liquidity management. A cash ratio of 0.26 means that for every $1 of current liabilities, Leidos Holdings Inc has $0.26 in readily available cash to meet those obligations.
Overall, while the company's cash ratio improved in 2023, further analysis of the company's liquidity position, current asset levels, and cash management practices would be beneficial to fully understand the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023