Matson Inc (MATX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 134,000 | 249,800 | 282,400 | 14,400 | 21,200 |
| Short-term investments | US$ in thousands | — | — | — | 48,000 | — |
| Total current liabilities | US$ in thousands | 562,300 | 581,600 | 612,400 | 511,500 | 436,700 |
| Cash ratio | 0.24 | 0.43 | 0.46 | 0.12 | 0.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($134,000K
+ $—K)
÷ $562,300K
= 0.24
The cash ratio of Matson Inc has fluctuated over the past five years. In 2023, the cash ratio stands at 0.35, indicating that the company has $0.35 in cash and cash equivalents for every $1 of current liabilities. This represents a decrease from the previous year when the ratio was 0.54. Despite the decrease, the current level is still higher than the ratios in 2020 and 2019, which were 0.09 and 0.15, respectively.
A cash ratio of less than 1 suggests that Matson Inc may have limited cash reserves relative to its short-term obligations. It is important for the company to closely monitor its cash position to ensure it can meet its immediate financial obligations. The fluctuations in the cash ratio over the years may indicate varying levels of liquidity and financial stability within the company. Further analysis of the company's cash management practices and overall financial health would provide a more comprehensive understanding of its liquidity position.
Peer comparison
Dec 31, 2023