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.
Peer comparison
Dec 31, 2023