Resideo Technologies Inc (REZI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 636,000 | 326,000 | 775,000 | 517,000 | 122,000 |
| Short-term investments | US$ in thousands | — | 23,000 | 4,000 | — | — |
| Total current liabilities | US$ in thousands | 1,525,000 | 1,546,000 | 1,494,000 | 1,538,000 | 1,494,000 |
| Cash ratio | 0.42 | 0.23 | 0.52 | 0.34 | 0.08 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($636,000K
+ $—K)
÷ $1,525,000K
= 0.42
The cash ratio of Resideo Technologies Inc has shown fluctuations over the past five years. The ratio was highest in 2021 at 0.62, indicating that the company had $0.62 of cash and cash equivalents for every dollar of current liabilities at the end of that year. This suggests a strong ability to cover short-term obligations using available cash resources.
However, the ratio decreased to 0.45 in 2020 before increasing to 0.54 in 2023. The decrease in 2020 may indicate a lower level of liquidity compared to the previous year. The rise in 2023 suggests an improvement in the company's ability to meet its short-term obligations through available cash.
Overall, the cash ratio of Resideo Technologies Inc has varied, but it is important to assess this ratio alongside other liquidity and solvency measures to gain a comprehensive understanding of the company's financial health and ability to manage short-term financial obligations.