Dorian LPG Ltd (LPG)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 282,508 | 148,797 | 236,759 | 79,330 | 48,390 |
| Short-term investments | US$ in thousands | 11,531 | — | — | 14,923 | 14,919 |
| Total current liabilities | US$ in thousands | 101,813 | 94,597 | 94,837 | 82,081 | 85,013 |
| Cash ratio | 2.89 | 1.57 | 2.50 | 1.15 | 0.74 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($282,508K
+ $11,531K)
÷ $101,813K
= 2.89
The cash ratio of Dorian LPG Ltd has shown a positive trend over the past five years. The ratio has steadily increased from 0.74 in 2020 to 2.89 in 2024. This indicates that the company has a sufficient level of cash to cover its current liabilities, which is a positive sign of liquidity. A higher cash ratio suggests that the company is in a better position to meet its short-term obligations without relying heavily on external sources of funding. Overall, the increasing trend in the cash ratio reflects improved liquidity management by Dorian LPG Ltd over the past five years.