Rollins Inc (ROL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 103,825 | 95,346 | 105,301 | 98,477 | 94,276 |
| Short-term investments | US$ in thousands | 1,000 | 500 | 12,600 | — | — |
| Total current liabilities | US$ in thousands | 576,689 | 493,784 | 491,162 | 472,511 | 410,035 |
| Cash ratio | 0.18 | 0.19 | 0.24 | 0.21 | 0.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($103,825K
+ $1,000K)
÷ $576,689K
= 0.18
The cash ratio of Rollins, Inc. has fluctuated over the last five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio stands at 0.27, indicating that the company has $0.27 of cash and cash equivalents for every $1 of current liabilities. This ratio has slightly increased from the prior year, which was 0.26 in 2022.
Comparing to the ratio in 2021, which was 0.32, the cash ratio has decreased in 2023, suggesting a potential decrease in the company's ability to cover its short-term obligations with cash on hand.
The cash ratio of 0.27 in 2023 is also lower than the ratios in 2020 and 2019, which were 0.28 and 0.35, respectively. This trend may indicate a decline in the liquidity position of Rollins, Inc. over the past few years.
Overall, although the company's cash ratio has fluctuated year over year, the decreasing trend since 2021 raises some concerns about Rollins, Inc.'s short-term liquidity management and ability to meet its immediate financial obligations with its available cash resources.
Peer comparison
Dec 31, 2023