Mister Car Wash, Inc. Common Stock (MCW)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 67,463 | 19,047 | 65,152 | 19,738 | 114,647 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 186,968 | 169,561 | 154,493 | 130,229 | 122,947 |
| Cash ratio | 0.36 | 0.11 | 0.42 | 0.15 | 0.93 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($67,463K
+ $—K)
÷ $186,968K
= 0.36
The cash ratio of Mister Car Wash, Inc. Common Stock has fluctuated over the past five years. As of December 31, 2020, the cash ratio stood at 0.93, indicating that the company held $0.93 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong liquidity position at that time.
However, by December 31, 2021, the cash ratio had decreased significantly to 0.15, reflecting a substantial decline in the company's ability to cover its short-term liabilities with cash on hand. This may raise concerns about liquidity risk and the company's ability to meet its obligations.
The cash ratio improved to 0.42 as of December 31, 2022, signaling a partial recovery in liquidity and an increase in the company's ability to meet short-term liabilities with available cash. This improvement could be a positive indicator of better cash management or enhanced financial stability.
By December 31, 2023, the cash ratio dropped again to 0.11, indicating a sharp decline in liquidity compared to the previous year. This low cash ratio might suggest potential challenges in meeting short-term obligations without relying on additional sources of liquidity.
As of December 31, 2024, the cash ratio increased to 0.36, showing some improvement in liquidity compared to the previous year. However, the ratio is still below the levels seen in 2020 and 2022, suggesting that the company may still have some room for enhancing its liquidity position.
In conclusion, the fluctuating trend in Mister Car Wash, Inc. Common Stock's cash ratio over the five-year period highlights the importance of closely monitoring liquidity levels and managing cash resources effectively to ensure the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2024