Myers Industries Inc (MYE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 30,290 | 23,139 | 17,655 | 28,301 | 75,527 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 165,107 | 137,762 | 132,500 | 142,247 | 82,625 |
| Cash ratio | 0.18 | 0.17 | 0.13 | 0.20 | 0.91 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($30,290K
+ $—K)
÷ $165,107K
= 0.18
The cash ratio of Myers Industries Inc. has fluctuated over the past five years. In 2023 and 2022, the company's cash ratio stood at 0.22, indicating that for every $1 of current liabilities, the company had $0.22 in cash or cash equivalents on hand. This suggests that Myers Industries Inc. may have had some liquidity challenges in these two years as the cash ratio was relatively low.
In 2021, the cash ratio decreased to 0.17, which could be a cause for concern as it indicates a further reduction in the company's ability to cover its short-term obligations with cash. However, in 2020, the cash ratio improved to 0.23, which is a positive sign of better liquidity management compared to the previous year.
The significant spike in the cash ratio to 0.95 in 2019 indicates that Myers Industries Inc. had a very high level of cash or cash equivalents relative to its current liabilities that year. This may be attributed to various factors such as increased cash reserves, efficient working capital management, or the company's strategy to maintain a strong liquidity position.
Overall, the fluctuating trend in Myers Industries Inc.'s cash ratio over the years suggests varying levels of liquidity and the company's ability to meet its short-term obligations with readily available cash. It is essential for the company to monitor and manage its cash position effectively to ensure financial stability and meet its obligations as they become due.
Peer comparison
Dec 31, 2023