RPC Inc (RES)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 223,310 | 126,424 | 82,433 | 84,496 | 50,023 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 151,857 | 178,603 | 130,849 | 79,565 | 101,402 |
| Cash ratio | 1.47 | 0.71 | 0.63 | 1.06 | 0.49 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($223,310K
+ $—K)
÷ $151,857K
= 1.47
The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. RPC, Inc.'s cash ratio has shown fluctuations over the past five years.
In 2023, the cash ratio improved significantly to 1.57, indicating that the company had $1.57 in cash and cash equivalents for every dollar of current liabilities. This suggests a strong liquidity position, which can help in meeting its short-term obligations comfortably.
The cash ratio was relatively lower in 2022 and 2021 at 0.82 and 0.73, respectively, indicating a lower level of liquidity compared to 2023. This could potentially raise concerns about the company's ability to cover its short-term liabilities solely with cash and cash equivalents during these years.
In 2020, the cash ratio increased to 1.22, showing an improvement in liquidity compared to the previous year. This indicates that the company had increased its cash reserves relative to its current liabilities.
The cash ratio was the lowest in 2019 at 0.63, indicating a lower level of liquidity and the potential for difficulties in covering short-term liabilities with available cash and cash equivalents during that period.
Overall, RPC, Inc.'s cash ratio has exhibited fluctuations over the past five years, with improvements in liquidity noted in some years and lower levels of liquidity in others. Investors and stakeholders should consider these fluctuations when assessing the company's ability to meet its short-term obligations with its available cash and cash equivalents.
Peer comparison
Dec 31, 2023