Enpro Industries (NPO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 236,300 | 369,800 | 334,400 | 338,100 | 229,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 198,000 | 196,400 | 211,500 | 379,100 | 202,000 |
| Cash ratio | 1.19 | 1.88 | 1.58 | 0.89 | 1.14 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($236,300K
+ $—K)
÷ $198,000K
= 1.19
The cash ratio of Enpro Industries has fluctuated over the last five years. As of December 31, 2020, the cash ratio stood at 1.14, indicating that the company had $1.14 in cash and cash equivalents for every dollar of current liabilities.
However, by December 31, 2021, the cash ratio decreased to 0.89, suggesting a lower ability to cover short-term obligations solely with cash on hand. This decline may raise concerns about Enpro Industries' liquidity position during that period.
Subsequently, there was a significant improvement in the cash ratio by December 31, 2022, where it reached 1.58. This indicates a healthier liquidity position, with the company having $1.58 in cash and cash equivalents for every dollar of current liabilities.
By December 31, 2023, the cash ratio further increased to 1.88, reflecting a strong ability to meet short-term obligations using readily available cash resources. This higher ratio suggests improved liquidity management by Enpro Industries and a reduced risk of default on current liabilities.
However, by December 31, 2024, the cash ratio declined to 1.19, although still above 1. This may suggest that the company's cash holdings relative to current liabilities decreased slightly compared to the previous year, but Enpro Industries continues to maintain a comfortable liquidity position overall.
Overall, monitoring the cash ratio of Enpro Industries provides insights into the company's ability to meet short-term financial obligations using its cash reserves, with fluctuations indicating changes in liquidity management strategies or financial performance.