Robert Half International Inc (RHI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	731,740	658,626	619,001	574,426	270,478
Short-term investments	US$ in thousands	28,616	—	—	—	—
Total current liabilities	US$ in thousands	1,235,110	1,216,200	1,358,670	1,046,630	940,692
Cash ratio		0.62	0.54	0.46	0.55	0.29

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($731,740K + $28,616K) ÷ $1,235,110K
= 0.62

The cash ratio of Robert Half Inc has shown some fluctuations over the past five years. In 2023, the cash ratio was 0.70, indicating that the company had $0.70 of cash and cash equivalents available for every $1 of current liabilities. This ratio was slightly higher compared to the previous year, suggesting improved liquidity position.

In 2022, the cash ratio was 0.69, which was relatively stable compared to the 2020 ratio of 0.69. This consistency indicates that Robert Half Inc maintained a consistent level of cash reserves relative to its current liabilities during these two years.

The cash ratio in 2021 was 0.58, representing a lower liquidity position compared to the previous years. However, there was a significant improvement in liquidity in 2020 with a cash ratio of 0.69, indicating the company had a higher level of cash reserves relative to its current liabilities.

The cash ratio in 2019 was 0.42, which was the lowest among the five years analyzed. This lower ratio suggests that Robert Half Inc had relatively less cash available to cover its short-term obligations in that year.

Overall, a higher cash ratio indicates better liquidity and the ability to meet short-term obligations. Robert Half Inc should aim to maintain a healthy cash ratio to ensure financial stability and flexibility in managing its current liabilities.