Enpro Industries (NPO)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 236,300 | 206,900 | 175,900 | 163,900 | 369,800 | 329,800 | 374,900 | 336,100 | 334,400 | 166,200 | 222,100 | 293,400 | 338,100 | 330,000 | 261,900 | 232,300 | 229,500 | 441,000 | 424,300 | 391,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | 35,800 | 35,000 | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 198,000 | 188,400 | 176,900 | 179,200 | 196,400 | 195,100 | 187,100 | 199,900 | 211,500 | 253,300 | 330,100 | 391,700 | 379,100 | 222,400 | 216,500 | 203,000 | 202,000 | 243,100 | 261,400 | 281,300 |
| Cash ratio | 1.19 | 1.10 | 0.99 | 0.91 | 1.88 | 1.69 | 2.20 | 1.86 | 1.58 | 0.66 | 0.67 | 0.75 | 0.89 | 1.48 | 1.21 | 1.14 | 1.14 | 1.81 | 1.62 | 1.39 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($236,300K
+ $—K)
÷ $198,000K
= 1.19
Enpro Industries' cash ratio shows the company's ability to cover its current liabilities with its cash and cash equivalents. The trend of the cash ratio over the past few years fluctuates, indicating changes in the company's liquidity position.
The cash ratio ranged from a low of 0.67 on June 30, 2022, to a high of 2.20 on June 30, 2023. This suggests that in the second quarter of 2023, Enpro Industries had more than twice as much cash and cash equivalents as its current liabilities. This peak was followed by a gradual decline in the cash ratio, reaching a low of 0.91 on March 31, 2024.
The downward trend from mid-2023 to early 2024 could indicate potential issues with liquidity management or increased expansion activities that required more cash outflows. However, the cash ratio recovered slightly to 1.19 on December 31, 2024, suggesting an improvement in Enpro Industries' liquidity position by the end of the year.
Overall, the varying cash ratio values highlight the importance of monitoring Enpro Industries' cash position closely to ensure sufficient liquidity to meet its short-term obligations. It also signals the need for effective cash management strategies to maintain financial stability.