Dorian LPG Ltd (LPG)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | — | 282,508 | 236,759 | 79,330 | 48,390 |
| Short-term investments | US$ in thousands | — | 11,531 | 0 | — | 14,923 |
| Total current liabilities | US$ in thousands | — | 101,813 | 94,837 | 82,081 | 85,013 |
| Cash ratio | — | 2.89 | 2.50 | 0.97 | 0.74 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($—K
+ $—K)
÷ $—K
= —
The cash ratio is a financial metric used to evaluate a company's liquidity and its ability to cover short-term obligations using its cash and cash equivalents. The trend of Dorian LPG Ltd's cash ratio over the past few years shows a gradual improvement, indicating an increasing ability to meet short-term debt obligations solely with its readily available cash and cash equivalents.
Specifically, the cash ratio has increased from 0.74 as of March 31, 2021, to 0.97 as of March 31, 2022. This shows that for every dollar of current liabilities, the company had $0.97 in cash and cash equivalents available as of the most recent fiscal year.
Furthermore, the cash ratio continued to rise significantly in the subsequent years, reaching 2.50 as of March 31, 2023, and further increasing to 2.89 as of March 31, 2024. These figures indicate a significant improvement in the company's liquidity position and its ability to cover short-term obligations with its cash reserves.
It's important to note that the data for March 31, 2025, is not available (indicated by "—"), and therefore, the trend beyond 2024 cannot be assessed based on the provided information.
Overall, the consistent growth in Dorian LPG Ltd's cash ratio reflects positive liquidity management and a strengthened financial position over the analyzed period. However, further analysis incorporating additional financial data and industry benchmarks would provide a more comprehensive understanding of the company's liquidity position.