MasterBrand Inc. (MBC)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 120,600 | 108,400 | 189,400 | 153,700 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 395,400 | 378,400 | 332,200 | 340,400 |
| Cash ratio | 0.31 | 0.29 | 0.57 | 0.45 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($120,600K
+ $—K)
÷ $395,400K
= 0.31
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. For MasterBrand Inc., the cash ratio has shown some fluctuation over the year 2024.
In March 31, 2024, the cash ratio was 0.45, indicating that the company had $0.45 in cash and cash equivalents for every $1 of current liabilities. This was a relatively moderate level, suggesting a decent ability to meet short-term obligations.
By June 30, 2024, the cash ratio improved to 0.57, reflecting an increase in the company's liquidity position. This indicates that MasterBrand Inc. had $0.57 in cash and cash equivalents for every $1 of current liabilities, signaling a stronger ability to pay off its short-term debts.
In September 30, 2024, the cash ratio decreased to 0.29, which may raise concerns about the company's liquidity position. This suggests that MasterBrand Inc. had $0.29 in cash and cash equivalents for every $1 of current liabilities, indicating a potential strain in meeting short-term obligations.
By the end of December 31, 2024, the cash ratio slightly improved to 0.31. While this improvement is noted, the ratio still remains relatively low compared to the earlier quarters of the year. It signals that the company had $0.31 in cash and cash equivalents for every $1 of current liabilities.
Overall, the fluctuations in MasterBrand Inc.'s cash ratio throughout 2024 indicate varying levels of liquidity and the company's ability to manage its short-term obligations. It would be advisable for stakeholders to monitor the trend in the cash ratio to assess the company's liquidity health effectively.
Peer comparison
Dec 31, 2024