Rollins Inc (ROL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 89,630 | 103,825 | 95,346 | 105,301 | 98,477 |
| Short-term investments | US$ in thousands | — | 1,000 | 500 | 12,600 | — |
| Total current liabilities | US$ in thousands | 645,162 | 576,689 | 493,784 | 491,162 | 472,511 |
| Cash ratio | 0.14 | 0.18 | 0.19 | 0.24 | 0.21 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($89,630K
+ $—K)
÷ $645,162K
= 0.14
The cash ratio of Rollins Inc has shown fluctuations over the past five years. It was 0.21 as of December 31, 2020, increased to 0.24 by December 31, 2021, but then decreased to 0.19 by December 31, 2022. Subsequently, there was a further decline to 0.18 by December 31, 2023, and finally dropped to 0.14 by December 31, 2024.
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a better ability to meet short-term obligations without relying on external sources of financing. Conversely, a declining cash ratio may suggest potential liquidity challenges or inefficient management of cash resources.
Rollins Inc may need to closely monitor its cash management practices and ensure sufficient liquidity to meet its short-term financial obligations, especially considering the downward trend in the cash ratio observed in recent years. Additionally, the company may benefit from maintaining a healthy balance between cash reserves and investments to optimize its financial position.
Peer comparison
Dec 31, 2024