Progyny Inc (PGNY)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 97,296 | 120,078 | 91,413 | 70,305 | 80,382 |
| Short-term investments | US$ in thousands | 273,791 | 69,222 | 28,005 | 38,994 | — |
| Total current liabilities | US$ in thousands | 185,950 | 159,536 | 98,824 | 77,786 | 36,163 |
| Cash ratio | 2.00 | 1.19 | 1.21 | 1.41 | 2.22 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($97,296K
+ $273,791K)
÷ $185,950K
= 2.00
The cash ratio of Progyny Inc has fluctuated over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2019, the cash ratio was relatively high at 2.36, suggesting a strong ability to cover short-term obligations with available cash. However, the ratio decreased in the following years, reaching its lowest point in 2022 at 1.21. This could indicate a potential strain on liquidity and the company's ability to meet its short-term obligations.
Subsequently, there was an improvement in the cash ratio in 2023, rising to 2.14. This indicates a better ability to cover short-term liabilities with cash on hand compared to the previous year.
Overall, while the cash ratio fluctuated, the recent increase suggests an improved liquidity position for Progyny Inc in 2023 compared to the previous year. However, it is important for the company to continue monitoring and managing its cash resources effectively to ensure it can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023