MSA Safety (MSA)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 146,442 162,902 140,895 160,672 152,195
Short-term investments US$ in thousands — 9,905 48,974 74,982 49,892
Total current liabilities US$ in thousands 332,818 345,865 330,606 310,545 277,509
Cash ratio 0.44 0.50 0.57 0.76 0.73

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($146,442K + $—K) ÷ $332,818K
= 0.44

The cash ratio of MSA Safety Inc has been showing a decreasing trend over the past five years, declining from 0.87 in 2019 to 0.56 in 2023. The cash ratio measures the ability of a company to cover its short-term liabilities with its cash and cash equivalents. A lower cash ratio indicates that the company may have a lower level of cash and cash equivalents relative to its current liabilities, which could potentially signal liquidity issues. However, it's essential to consider the industry norms and the company's specific business model when interpreting this ratio. Further analysis of MSA Safety Inc's liquidity position and its ability to generate and manage cash flows would provide a more comprehensive understanding of its financial health.