PHINIA Inc. (PHIN)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 484,000 | 477,000 | 325,000 |
| Short-term investments | US$ in thousands | — | 73,000 | — |
| Total current liabilities | US$ in thousands | 969,000 | 1,022,000 | 1,122,000 |
| Cash ratio | 0.50 | 0.54 | 0.29 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($484,000K
+ $—K)
÷ $969,000K
= 0.50
The cash ratio of PHINIA Inc. has shown a fluctuating trend over the course of the year 2024. As of March 31, 2024, the cash ratio was 0.29, indicating that the company had $0.29 in cash and cash equivalents for every dollar of current liabilities.
By September 30, 2024, the cash ratio had improved to 0.54, suggesting that the company's liquidity position had strengthened, with $0.54 in cash available for every dollar of current liabilities.
However, by the end of the year, on December 31, 2024, the cash ratio declined slightly to 0.50. Although lower than the ratio in September, it still indicates that PHINIA Inc. had sufficient cash reserves to cover half of its current liabilities.
Overall, the cash ratio of PHINIA Inc. demonstrates a reasonable level of liquidity throughout the year, with fluctuations reflecting changes in the company's cash holdings and current liabilities. However, it is essential for the company to monitor and manage its cash position effectively to ensure continued financial stability.
Peer comparison
Dec 31, 2024