RPC Inc (RES)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 325,975 | 223,310 | 126,424 | 82,433 | 84,496 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 181,913 | 151,857 | 178,603 | 130,849 | 79,565 |
| Cash ratio | 1.79 | 1.47 | 0.71 | 0.63 | 1.06 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($325,975K
+ $—K)
÷ $181,913K
= 1.79
The cash ratio of RPC Inc has fluctuated over the past five years. It stood at 1.06 on December 31, 2020, indicating that the company had $1.06 in cash and cash equivalents for every $1 of current liabilities. However, the ratio decreased to 0.63 by December 31, 2021, suggesting a decrease in the company's ability to cover its short-term obligations solely with cash assets.
In the following years, the cash ratio improved, reaching 0.71 by December 31, 2022, signaling a slight increase in the company's liquidity position. This trend continued, with the cash ratio further improving to 1.47 by December 31, 2023, indicating that RPC Inc had significantly strengthened its ability to meet its short-term liabilities with cash on hand.
By December 31, 2024, the cash ratio reached 1.79, continuing the positive trend seen in the previous year. This demonstrates that RPC Inc has been managing its cash effectively and enhancing its liquidity position, which could potentially improve its financial stability and ability to handle unexpected financial challenges.
Peer comparison
Dec 31, 2024