Enpro Industries (NPO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 369,800 | 334,400 | 338,100 | 229,500 | 121,200 |
| Short-term investments | US$ in thousands | — | 0 | — | — | — |
| Total current liabilities | US$ in thousands | 196,400 | 211,500 | 386,300 | 202,000 | 313,600 |
| Cash ratio | 1.88 | 1.58 | 0.88 | 1.14 | 0.39 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($369,800K
+ $—K)
÷ $196,400K
= 1.88
The cash ratio of Enpro Inc has exhibited an increasing trend over the past five years, indicating improving liquidity and the company's ability to cover its short-term obligations with its cash reserves.
As of December 31, 2023, the cash ratio stands at 1.99, signifying that for every dollar of current liabilities, Enpro Inc holds $1.99 in cash and cash equivalents. This indicates a strong liquidity position, providing the company with a cushion to meet its short-term obligations without relying heavily on other current assets.
Comparing this to the previous years, we observe a consistent improvement in the cash ratio from 0.57 in 2019 to 1.99 in 2023. This upward trend indicates that Enpro Inc has been effectively managing its cash resources and has increased its ability to weather financial challenges or capitalize on unforeseen opportunities.
Overall, the increasing trend in the cash ratio reflects positively on Enpro Inc's liquidity position and financial stability, offering assurance to stakeholders and creditors regarding the company's ability to meet its short-term obligations using its available cash reserves.