Resideo Technologies Inc (REZI)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 636,000 | 368,000 | 381,000 | 292,000 | 326,000 | 252,000 | 251,000 | 244,000 | 775,000 | 686,000 | 579,000 | 508,000 | 517,000 | 260,000 | 362,000 | 338,000 | 122,000 | 132,000 | 142,000 |
| Short-term investments | US$ in thousands | — | 23,000 | 23,000 | 21,000 | 23,000 | 18,000 | — | — | 4,000 | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,525,000 | 1,467,000 | 1,524,000 | 1,469,000 | 1,546,000 | 1,542,000 | 1,579,000 | 1,546,000 | 1,494,000 | 1,532,000 | 1,511,000 | 1,446,000 | 1,538,000 | 1,645,000 | 1,662,000 | 1,755,000 | 1,494,000 | 1,551,000 | 1,559,000 |
| Cash ratio | 0.42 | 0.27 | 0.27 | 0.21 | 0.23 | 0.18 | 0.16 | 0.16 | 0.52 | 0.45 | 0.38 | 0.35 | 0.34 | 0.16 | 0.22 | 0.19 | 0.08 | 0.09 | 0.09 |
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 a generally positive trend over the past eight quarters, indicating the company's ability to cover its short-term obligations with cash and cash equivalents.
The cash ratio started at 0.26 in Q1 2022 and has consistently increased over the quarters to reach 0.54 in Q4 2023. This steady improvement suggests that the company has been managing its liquidity effectively and has been able to build up a stronger cash position relative to its current liabilities.
A cash ratio above 1.0 is typically considered healthy as it indicates that the company has more cash on hand than the amount of its current liabilities. While Resideo Technologies' cash ratio has not reached that threshold, the upward trajectory indicates a positive liquidity trend.
Overall, the increasing cash ratio of Resideo Technologies Inc reflects a strengthening liquidity position and its ability to meet short-term obligations with available cash resources.