Enviri Corporation (NVRI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 88,359 | 121,239 | 81,332 | 82,908 | 76,454 |
| Short-term investments | US$ in thousands | — | 1,443 | — | — | — |
| Total current liabilities | US$ in thousands | 566,382 | 655,233 | 597,281 | 601,391 | 537,955 |
| Cash ratio | 0.16 | 0.19 | 0.14 | 0.14 | 0.14 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($88,359K
+ $—K)
÷ $566,382K
= 0.16
The cash ratio of Enviri Corporation has remained relatively stable over the past five years, standing at around 0.14 from December 31, 2020, to December 31, 2022. It indicates that for every dollar of current liabilities, the company has $0.14 in cash or near-cash assets available to cover these short-term obligations.
However, there was a slight increase in the cash ratio to 0.19 as of December 31, 2023, suggesting an improvement in the company's liquidity position. This could be attributed to an increase in cash reserves or a reduction in current liabilities.
Subsequently, the cash ratio dipped to 0.16 as of December 31, 2024, though it remained above the previous years' levels. This decrease may indicate a potential decrease in cash reserves relative to current liabilities or an increase in short-term obligations.
Overall, Enviri Corporation has maintained a reasonable cash ratio throughout the period, indicating a sound liquidity position that enables the company to meet its short-term financial commitments. However, monitoring fluctuations in the cash ratio is crucial to ensure the company's ability to cover immediate obligations with available cash resources.