MSA Safety (MSA)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	164,560	146,442	162,902	140,895	160,672
Short-term investments	US$ in thousands	—	0	9,905	48,974	74,982
Total current liabilities	US$ in thousands	288,093	332,818	345,865	330,606	310,545
Cash ratio		0.57	0.44	0.50	0.57	0.76

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($164,560K + $—K) ÷ $288,093K
= 0.57

The cash ratio for MSA Safety has shown a declining trend over the past five years based on the provided data. From 2020 to 2024, the cash ratio decreased from 0.76 to 0.57, then dropped to 0.50, further declining to 0.44, before slightly rebounding to 0.57. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher ratio indicates a stronger ability to meet short-term obligations. The decreasing trend in MSA Safety's cash ratio may indicate a potential liquidity concern, as the company's cash reserves may not be as sufficient relative to its short-term liabilities. It is essential for the company to closely monitor its liquidity position and implement strategies to improve its cash reserves to ensure financial stability and ability to meet its obligations.