Dorian LPG Ltd (LPG)
Cash ratio
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 282,508 | 208,460 | 192,044 | 155,549 | 148,797 | 129,817 | 141,287 | 155,518 | 236,759 | 115,808 | 98,105 | 78,254 | 79,330 | 133,594 | 145,059 | 142,934 | 48,390 | 64,691 | 46,420 | 21,717 |
| Short-term investments | US$ in thousands | 11,531 | 4,700 | — | — | — | — | — | — | — | — | — | — | — | — | — | 14,981 | 14,919 | — | — | — |
| Total current liabilities | US$ in thousands | 101,813 | 102,451 | 105,317 | 96,631 | 94,597 | 83,870 | 70,997 | 71,651 | 94,837 | 94,855 | 96,519 | 88,143 | 82,081 | 77,529 | 97,773 | 86,725 | 85,013 | 86,049 | 82,013 | 79,845 |
| Cash ratio | 2.89 | 2.08 | 1.82 | 1.61 | 1.57 | 1.55 | 1.99 | 2.17 | 2.50 | 1.22 | 1.02 | 0.89 | 0.97 | 1.72 | 1.48 | 1.82 | 0.74 | 0.75 | 0.57 | 0.27 |
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 fluctuated over the periods observed. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
From Dec 31, 2019, to Mar 31, 2024, the cash ratio has ranged from 0.27 to 2.89. The company's cash ratio peaked at 2.89 on Mar 31, 2024, indicating that Dorian LPG Ltd had significantly more cash and cash equivalents to cover its current liabilities at that time. However, it is important to note that a very high cash ratio could also suggest that the company is holding excess cash that could be utilized more effectively elsewhere.
Conversely, the lowest cash ratio of 0.27 on Dec 31, 2019, may indicate potential liquidity concerns as the company may have had insufficient cash to cover its short-term obligations at that point in time.
Overall, the trend in the cash ratio of Dorian LPG Ltd shows some variability, and it would be advisable to further analyze the company's liquidity position and cash management practices to understand the reasons behind these fluctuations in the cash ratio.