NXP Semiconductors NV (NXPI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,862,000 | 3,845,000 | 2,830,000 | 2,275,000 | 1,045,000 |
| Short-term investments | US$ in thousands | 409,000 | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,111,000 | 3,270,000 | 2,452,000 | 2,017,000 | 1,791,000 |
| Cash ratio | 1.04 | 1.18 | 1.15 | 1.13 | 0.58 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,862,000K
+ $409,000K)
÷ $4,111,000K
= 1.04
The cash ratio of NXP Semiconductors NV has demonstrated a generally positive trend over the past five years, starting at 0.76 in 2019 and consistently increasing to reach 1.18 in 2023. This indicates the company's ability to cover its short-term liabilities with its existing cash and cash equivalents.
Having a cash ratio greater than 1 is usually considered favorable, as it suggests that the company has sufficient liquid resources to meet its immediate financial obligations. NXP Semiconductors NV's cash ratio has consistently exceeded this benchmark throughout the years under review, reflecting a strong liquidity position.
The slight fluctuations in the cash ratio over the years are normal and can be influenced by various factors such as changes in cash reserves, operating cash flows, and short-term liabilities. Overall, the upward trend in NXP Semiconductors NV's cash ratio indicates a sound liquidity management strategy and financial health of the company.
Peer comparison
Dec 31, 2023