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.