NV5 Global Inc (NVEE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 44,824 | 38,541 | 47,980 | 64,909 | 31,825 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 159,419 | 160,894 | 163,951 | 136,186 | 114,358 |
| Cash ratio | 0.28 | 0.24 | 0.29 | 0.48 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($44,824K
+ $—K)
÷ $159,419K
= 0.28
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash on hand to meet its immediate financial obligations.
Looking at NV5 Global Inc's cash ratio over the past five years, we can see fluctuations in the ratio. In 2020, the cash ratio was relatively high at 0.48, indicating that the company had a significant amount of cash available to cover its short-term liabilities. However, in the following years, the cash ratio decreased to 0.28 in 2019, then increased again to 0.29 in 2021, before dropping to 0.24 in 2022, and reaching 0.28 in 2023.
The fluctuation in NV5 Global Inc's cash ratio over the years suggests that the company's liquidity position has been somewhat inconsistent. While a cash ratio above 1.0 is generally considered healthy, NV5 Global Inc's cash ratio has consistently been below this threshold, indicating that the company may have limited cash reserves relative to its short-term liabilities.
It would be important for stakeholders to monitor NV5 Global Inc's cash position closely to ensure that the company maintains adequate liquidity to meet its financial obligations as they come due. Any potential trends in the cash ratio should be further analyzed in conjunction with other financial metrics to get a comprehensive understanding of the company's financial health and liquidity management.
Peer comparison
Dec 31, 2023