MasTec Inc (MTZ)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 529,561 | 370,592 | 360,736 | 423,118 | 71,427 |
| Short-term investments | US$ in thousands | — | 200 | 7,900 | 17,000 | — |
| Total current liabilities | US$ in thousands | 2,837,220 | 2,496,040 | 1,784,600 | 1,415,200 | 1,219,130 |
| Cash ratio | 0.19 | 0.15 | 0.21 | 0.31 | 0.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($529,561K
+ $—K)
÷ $2,837,220K
= 0.19
The cash ratio of MasTec Inc has fluctuated over the past five years, ranging from 0.06 in 2019 to 0.31 in 2020, indicating a significant increase. However, the ratio decreased to 0.21 in 2021, before slightly increasing to 0.15 in 2022 and then to 0.19 in 2023.
A cash ratio below 1 suggests that MasTec Inc may not have enough liquid assets to cover its current liabilities. While the 2020 ratio of 0.31 indicates the company had a higher proportion of cash to meet its short-term obligations, the subsequent decreases in the ratio suggest a potential weakening liquidity position in the following years.
It is essential for MasTec Inc to closely monitor and manage its cash position to ensure it can meet its financial obligations and maintain financial stability in the long run.
Peer comparison
Dec 31, 2023