MasTec Inc (MTZ)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 399,903 | 529,561 | 370,592 | 360,736 | 423,118 |
| Short-term investments | US$ in thousands | — | — | 200 | 7,900 | 17,000 |
| Total current liabilities | US$ in thousands | 2,999,700 | 2,837,220 | 2,496,040 | 1,784,600 | 1,415,200 |
| Cash ratio | 0.13 | 0.19 | 0.15 | 0.21 | 0.31 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($399,903K
+ $—K)
÷ $2,999,700K
= 0.13
The cash ratio of MasTec Inc has shown a declining trend over the past five years, starting at 0.31 on December 31, 2020, and gradually decreasing to 0.13 on December 31, 2024. The cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio is generally preferred as it suggests a stronger liquidity position.
The decreasing trend in the cash ratio may raise concerns about MasTec Inc's liquidity position, as it indicates a lower proportion of cash and cash equivalents relative to its current liabilities. It is important for the company to closely monitor and manage its cash levels to ensure that it can meet its short-term obligations as they come due.
Investors and stakeholders may pay attention to MasTec Inc's cash management strategies and overall financial health to assess the company's ability to manage its liquidity effectively in the future.
Peer comparison
Dec 31, 2024