Gibraltar Industries Inc (ROCK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 99,426 | 17,608 | 12,849 | 32,054 | 191,363 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 225,578 | 215,320 | 286,990 | 302,240 | 229,197 |
| Cash ratio | 0.44 | 0.08 | 0.04 | 0.11 | 0.83 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($99,426K
+ $—K)
÷ $225,578K
= 0.44
The cash ratio of Gibraltar Industries Inc. has fluctuated over the past five years, ranging from a low of 0.12 in 2021 to a high of 0.92 in 2019. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
In 2023, the cash ratio improved to 0.52, signaling a better liquidity position compared to the prior year. This suggests that the company had a higher proportion of cash on hand relative to its current liabilities, potentially reducing liquidity risk.
On the other hand, the significant drop in the cash ratio in 2021 to 0.12 could indicate temporary cash flow challenges or a decrease in cash reserves relative to short-term obligations. This may have raised concerns about the company's ability to meet its immediate financial commitments without additional sources of funding.
Overall, fluctuations in the cash ratio of Gibraltar Industries Inc. highlight the importance of monitoring liquidity levels and managing cash effectively to ensure the company's continued ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023