PHINIA Inc. (PHIN)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 365,000 | 367,000 | 213,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 1,148,000 | 1,321,000 | 947,000 |
| Cash ratio | 0.32 | 0.28 | 0.22 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($365,000K
+ $—K)
÷ $1,148,000K
= 0.32
The cash ratio of PHINIA Inc. has been showing a positive trend over the past three quarters, increasing from 0.22 at the end of June 2023 to 0.32 at the end of December 2023. This indicates an improvement in the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A cash ratio of 0.32 means that for every dollar of current liabilities, PHINIA Inc. has $0.32 in cash on hand. This suggests that the company has a strong liquidity position and is better equipped to meet its immediate financial obligations. Overall, the increasing cash ratio reflects positively on the financial health and stability of PHINIA Inc.
Peer comparison
Dec 31, 2023