Schneider National Inc (SNDR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	102,400	385,700	244,800	395,500	551,600
Short-term investments	US$ in thousands	57,200	45,900	49,300	47,100	48,300
Total current liabilities	US$ in thousands	606,200	636,900	690,200	534,600	465,200
Cash ratio		0.26	0.68	0.43	0.83	1.29

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($102,400K + $57,200K) ÷ $606,200K
= 0.26

The cash ratio of Schneider National Inc has been fluctuating over the past five years. In 2023, the cash ratio stands at 0.26, showing a decrease from the previous year's ratio of 0.68. This indicates that the company has a lower level of cash and cash equivalents relative to its current liabilities in 2023. The drop in the cash ratio may suggest potential liquidity challenges for the company in meeting its short-term obligations.

Comparing to 2021 and 2020 where the cash ratios were 0.43 and 0.83 respectively, the decreasing trend in the cash ratio over the years may indicate a declining ability of Schneider National Inc to cover its current liabilities with its available cash and cash equivalents. Furthermore, when looking back at 2019 with a cash ratio of 1.29, there has been a significant downtrend in the company's liquidity position.

It is crucial for Schneider National Inc to carefully manage its cash flow and liquidity position to ensure it can meet its short-term financial obligations as they become due and maintain financial stability in the long run. A declining cash ratio may indicate a need for the company to improve its cash management practices and potentially seek additional sources of liquidity.