Matthews International Corporation (MATW)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,816 | 42,101 | 69,016 | 49,176 | 41,334 |
| Short-term investments | US$ in thousands | — | 920 | 3,358 | 31 | — |
| Total current liabilities | US$ in thousands | 434,775 | 394,600 | 411,375 | 354,225 | 316,868 |
| Cash ratio | 0.09 | 0.11 | 0.18 | 0.14 | 0.13 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,816K
+ $—K)
÷ $434,775K
= 0.09
The cash ratio of Matthews International Corporation has fluctuated over the past five years, ranging from 0.09 to 0.18. The ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
In 2024, the cash ratio stood at 0.09, suggesting a slight decline from the previous year. This could indicate a decrease in the company's cash position relative to its current liabilities. However, it is important to note that the ratio alone may not provide a complete picture of the company's liquidity position and should be analyzed in conjunction with other financial metrics.
Overall, the trend in the cash ratio for Matthews International Corporation signals some variability in its liquidity position over the past five years. Further analysis and comparison with industry benchmarks would provide a more insightful assessment of the company's financial health.