Mercer International Inc (MERC)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 313,992 | 343,725 | 213,338 | 300,560 | 354,032 | 287,254 | 419,861 | 410,705 | 345,610 | 338,730 | 384,534 | 395,083 | 361,098 | 345,580 | 303,334 | 286,526 | 351,085 | 264,899 | 257,322 | 233,234 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 75,000 | 75,000 | — | — | 43,341 | 45,844 | 46,616 | 46,429 | 47,865 | 48,413 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 286,437 | 267,866 | 370,464 | 382,678 | 378,061 | 323,093 | 273,904 | 281,184 | 283,124 | 256,491 | 265,364 | 230,183 | 211,796 | 200,716 | 196,954 | 185,143 | 256,312 | 204,057 | 223,103 | 212,256 |
| Cash ratio | 1.10 | 1.28 | 0.58 | 0.79 | 0.94 | 1.12 | 1.81 | 1.46 | 1.22 | 1.49 | 1.62 | 1.92 | 1.92 | 1.96 | 1.79 | 1.55 | 1.37 | 1.30 | 1.15 | 1.10 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($313,992K
+ $—K)
÷ $286,437K
= 1.10
The cash ratio of Mercer International Inc. has varied over the past eight quarters. In Q4 2023, the cash ratio stood at 1.18, indicating that the company had $1.18 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased from the previous quarter, Q3 2023, where it was at 1.40.
Looking further back, the cash ratio was at its lowest in Q2 2023 at 0.63, and then improved in Q3 2022 at 1.87. The trend shows fluctuations in Mercer International Inc.'s ability to cover its short-term liabilities with cash on hand over the periods analyzed.
Overall, a cash ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term liabilities. However, fluctuations in the cash ratio should be monitored closely to assess the company's liquidity position and ability to meet its obligations in the short term.