Progyny Inc (PGNY)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 162,314 | 97,296 | 120,078 | 91,413 | 70,305 |
| Short-term investments | US$ in thousands | 65,640 | 273,791 | 69,222 | 28,005 | 38,994 |
| Total current liabilities | US$ in thousands | 168,627 | 185,950 | 159,536 | 98,824 | 77,786 |
| Cash ratio | 1.35 | 2.00 | 1.19 | 1.21 | 1.41 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($162,314K
+ $65,640K)
÷ $168,627K
= 1.35
The cash ratio of Progyny Inc has shown some fluctuations over the years based on the data provided. As of December 31, 2020, the company had a cash ratio of 1.41, indicating that for every $1 of current liabilities, the company had $1.41 of cash and cash equivalents on hand, which is a healthy position.
However, by December 31, 2021, the cash ratio had decreased to 1.21, suggesting a slight decrease in the company's ability to cover its short-term obligations with cash alone. This could indicate a potential liquidity strain compared to the previous year.
The trend continued in 2022, with the cash ratio falling further to 1.19. This decline may raise concerns about the company's ability to meet its immediate financial obligations using its available cash resources.
On a positive note, by December 31, 2023, the cash ratio improved significantly to 2.00, indicating a strong position in liquidity. This increase suggests that the company was able to build up its cash reserves relative to its current liabilities, which is a positive sign for its financial health.
However, by December 31, 2024, the cash ratio dropped back down to 1.35. While still above 1 (indicating the company has sufficient cash to cover its current liabilities), this decrease from the previous year's ratio may warrant further monitoring to ensure the company's liquidity remains at a healthy level.
In conclusion, Progyny Inc's cash ratio has varied over the years, reaching both highs and lows. It is essential for the company to maintain an adequate cash position to meet its short-term obligations and manage its liquidity effectively.
Peer comparison
Dec 31, 2024