Silgan Holdings Inc (SLGN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 642,923 | 585,622 | 631,439 | 409,481 | 203,824 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,311,860 | 1,437,860 | 1,508,520 | 1,191,620 | 1,018,530 |
| Cash ratio | 0.28 | 0.41 | 0.42 | 0.34 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($642,923K
+ $—K)
÷ $2,311,860K
= 0.28
The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown some fluctuations for Silgan Holdings Inc. over the past five years.
In 2023, the cash ratio stands at 0.35, indicating that the company had $0.35 of cash and cash equivalents for every $1 of current liabilities. This represents a decrease from the previous year's ratio of 0.49. However, it is still higher than the ratios in 2020 and 2019, suggesting an improvement in the company's liquidity position compared to those years.
The trend over the five-year period shows a fluctuation in the cash ratio, with a peak in 2021 at 0.52 and a low in 2019 at 0.26. The fluctuations may indicate varying levels of cash reserves and short-term obligations over the years.
Overall, while the cash ratio has decreased in 2023 compared to the previous year, Silgan Holdings Inc. still maintains a reasonable level of liquidity to cover its short-term obligations. It is crucial for stakeholders to monitor changes in the cash ratio to assess the company's ability to meet its short-term financial commitments.
Peer comparison
Dec 31, 2023