Enviri Corporation (NVRI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 121,239 | 81,332 | 82,908 | 76,454 | 57,259 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 655,233 | 597,281 | 601,391 | 537,955 | 464,894 |
| Cash ratio | 0.19 | 0.14 | 0.14 | 0.14 | 0.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($121,239K
+ $—K)
÷ $655,233K
= 0.19
The cash ratio of Enviri Corp has exhibited fluctuations over the past five years. The ratio stood at 0.26 as of December 31, 2023, showing an improvement from the previous year's ratio of 0.21. This indicates that Enviri Corp had $0.26 of cash and cash equivalents for every dollar of current liabilities at the end of 2023.
Comparing the current ratio to earlier years, we observe that the cash ratio was also at 0.21 as of December 31, 2022, showcasing consistency in the company's ability to cover its short-term obligations with cash on hand. However, there was a substantial decrease in the ratio from 0.37 in 2021, which implies a decline in the company's liquidity position during that period.
Enviri Corp's cash ratio was at 0.30 as of December 31, 2019, which indicates that the company had better liquidity in that year compared to more recent years. It is crucial for the company to carefully manage its cash position to ensure it can meet its short-term financial obligations effectively in the future.