Proto Labs Inc (PRLB)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 89,071 | 87,873 | 96,149 | 92,804 | 83,790 | 83,496 | 66,493 | 62,051 | 56,558 | 59,361 | 54,666 | 57,239 | 65,929 | 47,802 | 41,909 | 43,774 | 127,603 | 118,254 | 98,003 | 91,905 |
| Short-term investments | US$ in thousands | 14,019 | 12,638 | 16,792 | 16,875 | 19,013 | 19,204 | 19,945 | 22,851 | 23,568 | 25,253 | 24,379 | 19,914 | 11,580 | 16,542 | 18,341 | 19,592 | 34,088 | 30,993 | 33,128 | 38,194 |
| Total current liabilities | US$ in thousands | 53,271 | 53,758 | 50,946 | 58,436 | 49,681 | 74,628 | 66,221 | 78,380 | 71,581 | 60,720 | 58,916 | 60,251 | 54,896 | 56,063 | 62,417 | 59,849 | 50,254 | 51,693 | 51,103 | 47,297 |
| Cash ratio | 1.94 | 1.87 | 2.22 | 1.88 | 2.07 | 1.38 | 1.31 | 1.08 | 1.12 | 1.39 | 1.34 | 1.28 | 1.41 | 1.15 | 0.97 | 1.06 | 3.22 | 2.89 | 2.57 | 2.75 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($89,071K
+ $14,019K)
÷ $53,271K
= 1.94
The cash ratio, which is a liquidity ratio, measures the ability of a company to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.
Looking at the trend of Proto Labs Inc's cash ratio from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The ratio ranged from a high of 3.22 on December 31, 2020, to a low of 0.97 on June 30, 2021. This indicates that Proto Labs Inc had a significant amount of cash and cash equivalents relative to its current liabilities at the end of 2020, but this ratio decreased substantially in the following periods.
Subsequently, the cash ratio remained relatively stable around the range of 1.00 to 1.50 from March 31, 2021, to June 30, 2024. The ratio improved towards the end of 2024, reaching 1.94 on December 31, 2024, suggesting that the company had increased its cash reserves compared to its short-term obligations.
Overall, Proto Labs Inc's cash ratio fluctuated over the analyzed period, with both highs and lows. It is important for investors and stakeholders to monitor the company’s cash position and liquidity management as reflected in this ratio to assess its ability to meet short-term obligations and manage financial risks effectively.
Peer comparison
Dec 31, 2024