EchoStar Corporation (SATS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,821,380 | 2,497,540 | 535,894 | 896,005 | 1,519,430 |
| Short-term investments | US$ in thousands | 623,044 | 1,092,700 | 1,153,440 | 1,662,710 | 976,189 |
| Total current liabilities | US$ in thousands | 8,018,590 | 6,442,610 | 460,123 | 1,425,170 | 496,019 |
| Cash ratio | 0.30 | 0.56 | 3.67 | 1.80 | 5.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,821,380K
+ $623,044K)
÷ $8,018,590K
= 0.30
The cash ratio of EchoStar Corporation has shown a declining trend over the past five years. The ratio stood at 0.30 in 2023, which indicates that the company had $0.30 in cash and cash equivalents for every dollar of current liabilities. This represents a significant decrease from the ratio of 0.56 in 2022 and a substantial decline from the higher ratios of 3.67 in 2021, 1.80 in 2020, and 5.03 in 2019.
The decreasing cash ratio could signal potential liquidity concerns for EchoStar Corporation, as it suggests a lower ability to cover its short-term liabilities with cash on hand. This could potentially impact the company's ability to meet its obligations in the short term and may indicate a need to closely monitor and manage its cash flow position.
Further analysis of the company's cash management practices, working capital efficiency, and overall financial health would be necessary to fully assess the implications of the decreasing cash ratio and to make informed recommendations for improvement.
Peer comparison
Dec 31, 2023