ManpowerGroup Inc (MAN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	581,300	639,000	847,800	1,567,100	1,025,800
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	4,799,700	4,911,700	5,780,500	4,684,800	4,441,400
Cash ratio		0.12	0.13	0.15	0.33	0.23

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($581,300K + $—K) ÷ $4,799,700K
= 0.12

The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio is generally indicative of a healthier liquidity position, as it suggests the company has more cash on hand to meet its immediate obligations.

Looking at the trend of ManpowerGroup's cash ratio over the past five years, we observe a fluctuating pattern. In 2020, the cash ratio was notably higher at 0.37, indicating a relatively stronger liquidity position at that time. However, there was a significant decline in the cash ratio in 2021 to 0.17, which suggests a potential decrease in available cash relative to short-term liabilities.

The cash ratio further decreased to 0.16 in 2022 and then to 0.15 in 2023. This downward trend in the cash ratio over the last three years may raise concerns about ManpowerGroup's ability to cover its short-term obligations solely with its cash reserves. The decreasing trend could indicate potential challenges in managing liquidity effectively or a shift in the company's cash management strategy.

It is important for investors and stakeholders to closely monitor ManpowerGroup's cash ratio and assess the company's overall liquidity position in conjunction with other financial metrics to gain a comprehensive understanding of its financial health and operational efficiency.