Owens & Minor Inc (OMI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 243,037 | 69,467 | 55,712 | 83,058 | 67,030 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,891,880 | 1,566,470 | 1,344,020 | 1,345,730 | 1,416,160 |
| Cash ratio | 0.13 | 0.04 | 0.04 | 0.06 | 0.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($243,037K
+ $—K)
÷ $1,891,880K
= 0.13
The cash ratio of Owens & Minor, Inc. has demonstrated fluctuations over the past five years, ranging from 0.10 to 0.21. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In 2023, the cash ratio improved to 0.21, indicating that the company had $0.21 of cash and cash equivalents for every $1 of current liabilities. This represents a positive trend compared to the previous year, suggesting improved liquidity and a strengthened ability to meet short-term obligations.
The significant increase in the cash ratio from 2022 to 2023 may signal more efficient cash management or a buildup of cash reserves. It could also indicate a reduction in short-term liabilities, which further bolsters the company's liquidity position.
Overall, a higher cash ratio is generally preferred as it signifies a healthier liquidity position and a lower risk of default on short-term obligations. The increasing trend in the cash ratio for Owens & Minor, Inc. from 2022 to 2023 is a positive indicator of the company's financial health and its ability to manage short-term obligations effectively.
Peer comparison
Dec 31, 2023