Somnigroup International Inc. (SGI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 74,900 | 69,400 | 300,700 | 65,000 | 64,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 908,200 | 981,200 | 1,053,400 | 974,800 | 773,300 |
| Cash ratio | 0.08 | 0.07 | 0.29 | 0.07 | 0.08 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($74,900K
+ $—K)
÷ $908,200K
= 0.08
The cash ratio of Somnigroup International Inc. has exhibited some fluctuations over the past five years. As of December 31, 2019, the cash ratio was 0.08, indicating that the company had $0.08 in cash and cash equivalents for every dollar of current liabilities. This ratio decreased slightly to 0.07 by December 31, 2020, suggesting a potential liquidity challenge in the short term.
However, there was a significant improvement in liquidity by December 31, 2021, with the cash ratio jumping to 0.29. This surge in the ratio implies that the company had significantly higher cash reserves compared to its current liabilities, which is a positive sign for its short-term financial health.
In the subsequent year, the cash ratio dropped back to 0.07 by December 31, 2022, possibly indicating a decrease in cash holdings relative to current liabilities. This reduction may warrant attention to ensure the company can meet its short-term obligations.
By the end of December 31, 2023, the cash ratio remained stable at 0.08, reflecting a similar level as in 2019. It is crucial for Somnigroup International Inc. to closely monitor its cash reserves relative to current liabilities to maintain liquidity and meet its financial obligations effectively.
Peer comparison
Dec 31, 2023