Mettler-Toledo International Inc (MTD)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	69,807	95,966	98,564	94,254	207,785
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,181,080	1,147,730	1,146,540	840,327	754,512
Cash ratio		0.06	0.08	0.09	0.11	0.28

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($69,807K + $—K) ÷ $1,181,080K
= 0.06

The cash ratio of Mettler-Toledo International, Inc. has been fluctuating over the past five years. The ratio stood at 0.15 in 2023, which indicates that for every dollar of current liabilities, the company had $0.15 in cash and cash equivalents available to cover its short-term obligations.

Comparing this to the previous years, we observe a declining trend from 2020 to 2023. In 2022, the cash ratio was higher at 0.20, suggesting a stronger liquidity position than in 2023. However, it dropped to 0.18 in 2021, showing a temporary decrease in the company's ability to cover immediate obligations with cash on hand.

The cash ratio was at its highest in 2019 at 0.36, indicating a robust cash position relative to current liabilities. The significant drop in the cash ratio from 2019 to 2023 suggests a potential decrease in the company's liquidity or a shift in its cash management strategy.

Overall, the declining trend in the cash ratio of Mettler-Toledo International, Inc. from 2019 to 2023 warrants further investigation into the company's cash management practices and its ability to meet short-term obligations with available cash resources.