Saia Inc (SAIA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	296,215	187,390	106,588	25,308	248
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	322,056	274,085	321,348	275,754	241,246
Cash ratio		0.92	0.68	0.33	0.09	0.00

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($296,215K + $—K) ÷ $322,056K
= 0.92

The cash ratio of Saia Inc. has shown a consistent increasing trend over the past five years, indicating a strengthening liquidity position. The cash ratio was 0.12 in 2019, which has steadily increased to 1.04 in 2023. This suggests that Saia Inc. has significantly improved its ability to cover its short-term liabilities with its cash and cash equivalents over the years.

A cash ratio of 1.04 in 2023 means that for every dollar of current liabilities, the company has $1.04 in cash and cash equivalents available to cover those obligations. This indicates a healthy liquidity position, as the company has sufficient liquid assets to meet its short-term financial obligations without relying heavily on other current assets or external financing.

The increasing trend in the cash ratio reflects positively on Saia Inc.'s financial health, as it indicates an enhanced ability to manage short-term financial obligations and unexpected expenses. It also suggests that the company has improved its cash management practices and efficiency in generating cash flows over the years.

Overall, the upward trajectory of Saia Inc.'s cash ratio signals improved liquidity and financial stability, which are essential for weathering economic uncertainties and capitalizing on growth opportunities in the future.