Oceaneering International Inc (OII)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	461,566	568,745	538,114	452,016	373,655
Short-term investments	US$ in thousands	0	6,369	6,416	10,179	10,179
Total current liabilities	US$ in thousands	732,476	568,414	501,161	437,116	600,956
Cash ratio		0.63	1.01	1.09	1.06	0.64

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($461,566K + $0K) ÷ $732,476K
= 0.63

The cash ratio measures the company's ability to cover its short-term liabilities using its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations.

Oceaneering International, Inc.'s cash ratio has shown some fluctuations over the past five years. The ratio stood at 1.04 in 2023, declining from 1.44 in 2022 and 1.54 in 2021. This downtrend is worth noting, and it indicates a reduced ability to cover short-term liabilities solely with cash and cash equivalents.

Comparing these recent ratios with those from previous years, the company's cash ratio peaked at 1.68 in 2020 and was at 1.08 in 2019. This suggests that Oceaneering International's liquidity position was stronger in 2020 than in the subsequent years, although it improved from 2019.

Overall, the downward trend in the cash ratio over the past three years raises some concern about the company's liquidity management and ability to cover short-term obligations solely from its cash reserves. Further analysis and consideration of other liquidity metrics would provide a more comprehensive view of Oceaneering International, Inc.'s financial health.