Oceaneering International Inc (OII)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	497,516	461,566	568,745	538,114	452,016
Short-term investments	US$ in thousands	7,000	0	6,369	6,416	10,179
Total current liabilities	US$ in thousands	796,938	732,476	568,414	501,161	437,116
Cash ratio		0.63	0.63	1.01	1.09	1.06

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($497,516K + $7,000K) ÷ $796,938K
= 0.63

The cash ratio for Oceaneering International Inc has been relatively stable over the past five years. It was 1.06 as of December 31, 2020, slightly increased to 1.09 by December 31, 2021, and then slightly decreased to 1.01 by December 31, 2022. However, there was a significant drop in the cash ratio to 0.63 by December 31, 2023, which remained unchanged by December 31, 2024.

The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A ratio above 1 indicates that the company has enough cash to cover its short-term obligations. Oceaneering International Inc maintained a healthy cash position during the first three years, but experienced a decline in its cash ratio in the last two years, potentially indicating a decrease in liquidity or an increase in short-term liabilities relative to available cash. This trend should be further investigated to ensure the company's financial health and ability to meet its short-term obligations.