Mettler-Toledo International Inc (MTD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 59,362 | 69,807 | 95,966 | 98,564 | 94,254 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,168,190 | 1,181,080 | 1,147,730 | 1,146,540 | 840,327 |
| Cash ratio | 0.05 | 0.06 | 0.08 | 0.09 | 0.11 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($59,362K
+ $—K)
÷ $1,168,190K
= 0.05
The cash ratio of Mettler-Toledo International Inc has shown a declining trend over the period from December 31, 2020, to December 31, 2024. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, decreased from 0.11 in 2020 to 0.05 in 2024.
A cash ratio of 0.05 as of December 31, 2024, indicates that the company has $0.05 of cash and cash equivalents for every dollar of its current liabilities. This may raise concerns about the company's short-term liquidity position, as a lower cash ratio suggests a reduced ability to meet its short-term obligations solely from its cash holdings.
The declining trend in the cash ratio may signal potential challenges for Mettler-Toledo International Inc in managing its short-term liquidity effectively. Further analysis of the company's cash management practices and overall financial health may be warranted to assess its ability to meet its short-term obligations in the future.
Peer comparison
Dec 31, 2024