Republic Services Inc (RSG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 140,000 | 143,400 | 29,000 | 38,200 | 47,100 |
| Short-term investments | US$ in thousands | 163,600 | 127,600 | 139,000 | 149,100 | 0 |
| Total current liabilities | US$ in thousands | 4,228,300 | 3,390,700 | 2,415,600 | 2,282,000 | 3,064,600 |
| Cash ratio | 0.07 | 0.08 | 0.07 | 0.08 | 0.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($140,000K
+ $163,600K)
÷ $4,228,300K
= 0.07
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. The higher the ratio, the better the company's liquidity position.
Looking at Republic Services, Inc.'s cash ratio over the past five years, we observe fluctuations in the measure. In 2023, the cash ratio decreased to 0.07 from 0.08 in 2022. Despite this decrease, the company still maintained a relatively strong ability to cover its short-term liabilities with cash on hand.
Comparing the current ratio to previous years, we see that in 2021 the cash ratio was higher at 0.05, before increasing slightly in 2022 to 0.08, and then decreasing again in 2023 to 0.07. This indicates some variability in the company's liquidity position over the years.
Overall, although the cash ratio for Republic Services, Inc. has fluctuated, it has generally remained in a range that suggests the company has the capability to meet its short-term financial obligations with its available cash resources. Further analysis of the company's cash management practices and overall liquidity position would provide additional insights into its ability to weather potential financial challenges.
Peer comparison
Dec 31, 2023